207 REDWOOD: Files New Schedules of Assets and Liabilities----------------------------------------------------------207 Redwood LLC has filed with the U.S. Bankruptcy for District ofMaryland an amended schedule of assets and liabilities,disclosing:

2001 PROPERTIES: U.S. Trustee Unable to Appoint Creditors Panel---------------------------------------------------------------Charles F. McVay, the United States Trustee for Region 19, hasadvised the U.S. Bankruptcy Court for the District of Coloradothat an official committee of unsecured creditors has not beenappointed in the Chapter 11 case of 2001 Properties, LLC, becausethere are too few creditors who are willing to serve on thecommittee.

The Company did not file a list of creditors together with itspetition.

The petition was signed by Warren Diamond, managing member.

ABITIBIBOWATER INC: Posts $829 Million Net Loss in Third Quarter----------------------------------------------------------------AbitibiBowater Inc. filed its quarterly report on Form 10-Q,reporting a net loss of $829.0 million on $1.19 billion of salesfor the three months ended Sept. 30, 2010, compared with a netloss of $511.0 million on $1.1 million of sales for the sameperiod a year ago.

The Company's balance sheet at Sept. 30, 2010, shows$6.447 billion in total assets, $1.773 billion in currentliabilities, $2.261 billion in liabilities not subject tocompromise, $7.859 billion in liabilities subject to compromise,and a deficit of $3.673 billion.

In their creditor protection proceedings in the U.S. and Canada,AbitibiBowater Inc. and its units have filed plans ofreorganization, which provide for these terms:

-- each of the Debtors' operations will continue in substantially their current form;

-- all amounts outstanding under the $206 million Bowater DIP Agreement will be paid in full in cash and the facility will be terminated;

-- all outstanding receivable interests sold under the Abitibi and Donohue Corp. accounts receivable securitization program will be repurchased in cash for a price equal to the par amount thereof and the program will be terminated;

-- all amounts outstanding under the Bowater prepetition secured bank credit facilities, which consist of separate credit agreements entered into by Bowater and Bowater Canadian Forest Products Inc., an indirect, wholly-owned subsidiary of Bowater, will be paid in full in cash, including accrued interest;

-- the outstanding balance of the ACCC pre-petition senior secured term loan will be paid in full in cash, including accrued interest;

-- the outstanding balance of the ACCC pre-petition 13.75% senior secured notes due 2011 will be paid in full in cash, including accrued interest;

-- the outstanding pre-petition Bowater floating rate industrial revenue bonds due 2029 will be paid in full in cash, including accrued interest;

-- certain holders of allowed claims arising from the Debtors' prepetition unsecured indebtedness will receive their pro rata share of the new common stock to be issued by us, as reorganized, upon emergence from the Creditor Protection Proceedings;

-- the Debtors' obligations to fund the prior service costs related to their pension and other postretirement benefit plans will be reinstated, subject to the resolution of funding relie;

-- holders of pre-petition unsecured indebtedness with individual claim amounts of $5,000 or less (or reduced to such amount) may be paid in cash in an amount equal to 50% of their claim amount, but under certain circumstances, these claim holders may be treated instead like all other holders of claims arising from pre-petition unsecured indebtedness;

-- all equity interests in the Company existing immediately prior to the emergence date will be discharged, canceled, released and extinguished;

-- after the reorganization upon consummation of the Plans of Reorganization, Abitibi will assume the obligations in respect of the $850 million of 10.25% senior secured notes due 2018 issued by an escrow subsidiary; and

-- after the reorganization upon consummation of the Plans of Reorganization, the Company expects to enter into a senior secured asset-based revolving credit facility in an amount of $600 million, under which $42 million of letters of credit are expected to be outstanding.

In September 2010, the creditors under the CCAA Proceedings andthe Chapter 11 Cases, with one exception, voted in the requisitenumbers to approve the respective Plan of Reorganization and theCanadian Court sanctioned the CCAA Reorganization Plan onSeptember 23, 2010.

The hearing before the U.S. Court with respect to confirmation ofthe Chapter 11 Reorganization Plan began on September 24, 2010.he U.S. Court has not yet ruled on the confirmation of the Chapter11 Reorganization Plan.

Creditors of Bowater Canada Finance Corporation, a wholly-ownedsubsidiary of Bowater Incorporated, a wholly-owned subsidiary ofAbitibiBowater Inc., did not vote in the requisite numbers toapprove the Plans of Reorganization. Accordingly, the Debtors didnot seek sanction of the CCAA Reorganization Plan with respect toBCFC and are not currently seeking confirmation of the Chapter 11Reorganization Plan with respect to BCFC.

About AbitibiBowater Inc.

AbitibiBowater Inc. produces newsprint, commercial printingpapers, market pulp and wood products. It is the eighthlargest publicly traded pulp and paper manufacturer in the world.AbitibiBowater owns or operates 22 pulp and paper facilities and26 wood products facilities located in the United States, Canadaand South Korea. The Company also recycles old newspapers andmagazines.

The Company and several of its affiliates filed for protectionunder Chapter 11 of the U.S. Bankruptcy Code on April 16, 2009(Bankr. D. Del. Lead Case No. 09-11296). The Company and itsCanadian affiliates commenced parallel restructuring proceedingsunder the Companies' Creditors Arrangement Act before the QuebecSuperior Court Commercial Division the next day. Alex F. Morrisonat Ernst & Young, Inc., was appointed CCAA monitor.

The investors were Brigade Capital Management, Canyon CapitalAdvisors, Sankaty Advisors, BlackRock Inc.'s BlackRock FinancialManagement, Tinicum Inc. and Principal Global Investors.According to the Journal, the investors owned a large chunk ofAccuride's bonds and negotiated a deal to give them control of theCompany when it exited from bankruptcy protection in February.They had formed an informal creditors' committee in Accuride'sbankruptcy case, which they dubbed the "ad hoc noteholder group."

Under the judge's ruling, the investors will have to disclose whatbonds they purchased and sold, and on what date and at what pricethey did so.

Trading in Accuride debt during its bankruptcy proceedings wasexamined in a September page-one article in The Wall StreetJournal. Mr. Spector reports that the tactics of distressed-debtinvestors, while legal, have raised questions of transparency andfairness among bankruptcy judges and other participants inAmerica's corporate restructuring regime.

The investors, Mr. Spector reports, have argued a currentdisclosure rule called Rule 2019 shouldn't apply to them becausethey aren't acting as "committees."

According to Mr. Spector, the disclosures could reveal more aboutthe gains investors made investing in Accuride's debt. Othercourt filings made by the investors showed they held about 70% ofAccuride's bonds and sold most of them sometime before Jan. 29.By then, the bonds were trading at around 91 cents on the dollar-- more than four times their value when the investors' groupfirst started negotiating Accuride's restructuring.

The Journal recalls the Accuride bondholders had negotiated a deallast year in which they would exchange debt for nearly all theequity in the company through a Chapter 11 bankruptcyreorganization. Accuride shareholders, who stood to be wiped out,asked Judge Shannon to require the bondholders to file a statementoutlining details of their investments.

The Journal relates the bondholders resisted, contending theyweren't a "committee." Judge Shannon disagreed but allowed theinvestors to file certain disclosures under seal while theyappealed his decision to make them reveal details of theirinvestments. Accuride emerged from bankruptcy, and the debtinvestors withdrew their appeal.

The Wall Street Journal, through its parent company, Dow Jones,asked Judge Shannon to unseal the investment disclosures. Mr.Spector relates the investors opposed, arguing Dow Jones shouldn'tbe allowed to enter the case at such a late stage and thatunsealing the details would divulge "confidential commercialinformation to which no constitutional, bankruptcy, common law, orother right of access applies."

According to Mr. Spector, Judge Shannon found that Dow Jones couldenter the case and that it "sufficiently demonstrated" the causeof its intervention as "the advancement of transparency inbankruptcy proceedings and public right to access bankruptcydocuments."

As reported by the Troubled Company Reporter on August 3, 2010,Standard & Poor's Ratings Services assigned its 'B' corporatecredit rating and stable outlook to Accuride Corp. Upon emergencefrom Chapter 11, the Company reduced debt by about one-third. S&Psaid the refinancing does not significantly affect total debt butimproves liquidity by extending debt maturities and addingborrowing availability, as the Company currently has no revolvingcredit facility.

The TCR on July 22 reported that Moody's Investors Serviceassigned Corporate Family and Probability of Default ratings of B2to Accuride. The B2 Corporate Family Rating reflects Accuride'sdeleveraged capital structure and the impact of restructuringactions achieved during and prior to the company's tenor inbankruptcy protection.

ALLIED SERVICES: Moody's Assigns 'B2' Rating to $165 Mil. Loan--------------------------------------------------------------Moody's Investors Service has assigned a B2 rating to AlliedServices Vehicles new $165 million senior secured lien term loan Bdue 2016 and assigned a B2 CFR and PDR to the company. Thecompany's new $100 million ABL was not rated. The company'srating outlook is stable.

The new $165 million term loan B has a first lien on allcollateral except those assets that it has a second lien includingdeposit accounts, accounts receivable, inventory, certain relateditems and the outstanding stock of the borrower's subsidiaries.Proceeds from the transaction are expected to go towards payingdown the company's existing debt, preferred equity held by thesponsor, repayment of bridge equity, pay a small dividend tominority shareholders, and to finance the transaction.

The B2 CFR and PDR ratings reflect the company's low net margins,the tough business climate for recreational vehicles and theindustry's performance during the downturn. Moreover the toughclimate for state and municipal budgets is anticipated to pressurethe company's fire truck and bus manufacturing business. Thecompany operating margin is anticipated to be in the low singledigits for 2011 but should improve as the company continues toseek expense reduction opportunities.

The rating benefits from the company's low pro-forma leverage(expected at just over 3x for fiscal 2011- low for the category),its product diversity, and the benefits from expense reductioninitiatives taken during 2010. However, the rating is constrainedby the company's short operating track record in its current formas it was a recent rollup and the highly cyclical demand level forits products.

The stable ratings outlook reflects the belief that the company'sbusiness mix should help it negotiate through the tough businessenvironment. The ambulance business and school bus businessshould be less impacted by the economy than its recreationalvehicle business. The ratings do not contemplate the businessweakening significantly from current levels. The company'scurrent and anticipated free cash flow generation is supportive ofthe current ratings.

What could drive the rating lower

A weakening in the recreational vehicles operating margin couldcause downward ratings pressure as would a contraction in totalconsolidated revenues. A weakening in the company's school busbusiness would be a concern as the rating current contemplatesstable school bus demand.

What could drive the ratings higher

The rating and or outlook may benefit if the company's operatingmargins improve on a sustainable basis and once the company has anoperating track record of operating on a consolidated basis. Thisis important as ASV was created through the merger of threecompanies and an asset purchase and has a short operating historypost the consolidation. Free cash flow to debt to improve to over10% on a sustainable basis would also create positive ratingstraction.

This is the time that Moody's has rated Allied Specialty Vehicles,Inc.

Allied Specialty Vehicles, Inc., is a designer, manufacturer andmarketer of a broad range of specialty vehicles and vehiclebodies. The company operates in three segments: fire andemergency, recreational vehicles, and commercial vehiclesincluding school buses, terminal trucks, and road constructionequipment. Proforma revenues for 2010 are anticipated to exceed$950 million.

Ambac Financial Group, Inc., headquartered in New York City, is aholding company whose affiliates provided financial guarantees andfinancial services to clients in both the public and privatesectors around the world.

Ambac Financial filed a voluntary petition for relief underChapter 11 of the U.S. Bankruptcy Code in Manhattan (Bankr.S.D.N.Y. Case No. 10-15973) on November 8, 2010. Ambac said itwill continue to operate in the ordinary course of business as"debtor-in-possession" under the jurisdiction of the BankruptcyCourt and in accordance with the applicable provisions of theBankruptcy Code and the orders of the Bankruptcy Court.

Ambac's bond insurance unit, Ambac Assurance Corp., did not filefor bankruptcy. AAC is being restructured by state regulators inWisconsin. AAC is domiciled in Wisconsin and regulated by theOffice of the Commissioner of Insurance of the State of Wisconsin.The parent company is not regulated by the OCI.

Ambac's consolidated balance sheet -- which includes non-debtorAmbac Assurance Corp -- showed $30.05 billion in total assets,$31.47 billion in total liabilities, and a $1.42 billionstockholders' deficit, at June 30, 2010.

On an unconsolidated basis, Ambac said in a court filing thatit has assets of ($394.5 million) and total liabilities of$1.6826 billion as of June 30, 2010.

Bank of New York Mellon Corp., as trustee to seven different typesof notes, is listed as the largest unsecured creditor, with claimstotaling about $1.62 billion.

The Vanguard Group, Inc., holds 5.46% of the stock of Ambac and isits largest shareholder.

AMBAC FIN'L: NYSE Suspends Trading of Synthetic Certificates------------------------------------------------------------Synthetic Fixed-Income Securities, Inc., said STRATS(TM) Trust forAmbac Financial Group, Inc. Securities, Series 2007-1 receivednoticed from the New York Stock Exchange that trading in theSTRATS Callable Certificates, Series 2007-1 issued by the Trustwould be suspended as of November 9, 2010. The NYSE would makean application to the Securities and Exchange Commission todelist the Securities from the NYSE.

Synthetic Fixed-Income made the disclosure in a regulatory filingwith the Securities and Exchange Commission dated November 10,2010.

The NYSE stated in a press release dated November 9, 2010, thatbecause all of Ambac's Exchange-listed securities have beensuspended from trading, and because Ambac's 6.15% Directly-IssuedSubordinated Capital Securities due February 15, 2037 are theonly assets of the Trust, the NYSE believes that the Securitiesare no longer suitable for exchange trading.

The NYSE noted that it may, at any time, suspend a security if itbelieves that continued dealings in the security on the Exchangeare not advisable.

Synthetic Fixed-Income President William Threadgill relates thatif Ambac's obligations to file periodic reports under theSecurities Exchange Act of 1934 are terminated or if Ambac ceasesfiling those reports, then (i) the Trust may terminate itsregistration under the Exchange Act; or (ii) the Trust may berequired to dissolve and liquidate the underlying securities inaccordance with the terms of the Trust Agreement.

About Ambac Financial

Ambac Financial Group, Inc., headquartered in New York City, is aholding company whose affiliates provided financial guarantees andfinancial services to clients in both the public and privatesectors around the world.

Ambac Financial filed a voluntary petition for relief underChapter 11 of the U.S. Bankruptcy Code in Manhattan (Bankr.S.D.N.Y. Case No. 10-15973) on November 8, 2010. Ambac said itwill continue to operate in the ordinary course of business as"debtor-in-possession" under the jurisdiction of the BankruptcyCourt and in accordance with the applicable provisions of theBankruptcy Code and the orders of the Bankruptcy Court.

Ambac's bond insurance unit, Ambac Assurance Corp., did not filefor bankruptcy. AAC is being restructured by state regulators inWisconsin. AAC is domiciled in Wisconsin and regulated by theOffice of the Commissioner of Insurance of the State of Wisconsin.The parent company is not regulated by the OCI.

Ambac's consolidated balance sheet -- which includes non-debtorAmbac Assurance Corp -- showed $30.05 billion in total assets,$31.47 billion in total liabilities, and a $1.42 billionstockholders' deficit, at June 30, 2010.

On an unconsolidated basis, Ambac said in a court filing thatit has assets of ($394.5 million) and total liabilities of$1.6826 billion as of June 30, 2010.

Bank of New York Mellon Corp., as trustee to seven different typesof notes, is listed as the largest unsecured creditor, with claimstotaling about $1.62 billion.

The Vanguard Group, Inc., holds 5.46% of the stock of Ambac and isits largest shareholder.

AMERICAN INT'L: Extends Equity Units Exchange Bid Until Nov. 23---------------------------------------------------------------American International Group, Inc., has extended its offer toexchange up to 74,480,000 of its Equity Units consisting ofCorporate Units for consideration per Corporate Unit equal to0.09867 shares of its common stock plus $3.2702 in cash.

The exchange offer, which was commenced on October 8, 2010 and waspreviously scheduled to expire at 11:59 p.m., New York City time,on November 17, 2010, will now expire at 11:59 p.m., New York Citytime, on November 23, 2010, unless further extended or earlierterminated by AIG. All other terms of the exchange offer remainthe same.

As of 3 p.m., New York City time, on November 17, 2010, 42,557,560Corporate Units had been validly tendered and not withdrawn.

A registration statement relating to the common stock to be issuedin the exchange offer has been filed with the Securities andExchange Commission but has not yet become effective. The commonstock being offered in the exchange offer may not be sold nor mayoffers to exchange be accepted prior to the time that theregistration statement related to the exchange offer becomeseffective.

BofA Merrill Lynch, Citi, Deutsche Bank Securities, J.P. Morgan,BNP PARIBAS, Credit Suisse, Morgan Stanley and UBS Investment Bankare acting as dealer managers for the exchange offer. GlobalBondholder Services Corporation is acting as information andexchange agent for the exchange offer. Information concerning theterms of the exchange offer may be obtained by contacting BofAMerrill Lynch at 888-292-0070 (toll-free) or 980-683-3215(collect) or Citi at 800-558-3745 (toll-free) or 212-723-6106(collect). Copies of the registration statement, exchange offerprospectus, letter of transmittal and other materials related tothe exchange offer, may be obtained at no charge from theinformation and exchange agent at 212- 430-3774 (collect) or 866-873-7700 (toll-free) or from the Securities and ExchangeCommission's Web site at http://www.sec.gov/

About AIG

American International Group, Inc. -- http://www.aig.com/-- is an international insurance organization with operations in more than130 countries and jurisdictions. AIG companies serve commercial,institutional and individual customers through one of the mostextensive worldwide property-casualty networks of any insurer. Inaddition, AIG companies are leading providers of life insuranceand retirement services around the world. AIG common stock islisted on the New York Stock Exchange, as well as the stockexchanges in Ireland and Tokyo.

In September 2008, AIG experienced a liquidity crunch when itscredit ratings were downgraded below "AA" levels by Standard &Poor's, Moody's Investors Service and Fitch Ratings. AIG almostcollapsed under the weight of bad bets it made insuring mortgage-backed securities. The Company, however, was bailed out by theFederal Reserve, but even after an initial infusion of$85 billion, losses continued to grow. The later rescue packagesbrought the total to $182 billion, making it the biggest federalbailout in U.S. history.

AIG has been working to protect and enhance the value of its keybusinesses, execute an orderly asset disposition plan, andposition itself for the future. AIG has sold a number of itssubsidiaries and other assets to pay down loans received from theU.S. government, and continues to seek buyers of its assets.

AMERICAN MEDIA: Files for Chapter 11 with Prepackaged Plan----------------------------------------------------------American Media, Inc., and 15 units, including American MediaOperations, Inc., filed for Chapter 11 protection in Manhattan(Bankr. S.D.N.Y. Case No. 10-16140) on November 17, 2010.

American Media filed together with the petition, a pre-packagedChapter 11 plan where holders of notes and bank debt would receiveeither cash, new notes or stock.

American Media said it would try to emerge from court protectionagainst creditors in 60 days or less.

"American Media is engaging in this strategy from a position offinancial strength and confidence," said David Pecker, Chairman,President and CEO of American Media. "It will provide the Companywith the ability to compete even more aggressively with our peersin the industry. During this period of sixty days or less, therewill be no impact on our employees, vendors, or advertisers, aswell as our subsidiary company DSI and its customers andpartners."

"Publications will function seamlessly, staff will be unaffectedby the reorganization and customers should not notice anydifference during this short process. Our advertisers, vendorsand publishing services clients have already expressed strongsupport and confidence," continued Mr. Pecker. "They understandthat American Media will be a stronger and healthier companyfollowing this restructuring."

AMI estimated assets of $0 to $50,000 and debts of $500 million to$1 billion in its Chapter 11 petition. AMO, AMI's operating unit,estimated assets of $100 million to $500 million and debts of$500 million to $1 billion in its Chapter 11 petition.

As of the Petition Date, AMO's total principal amount ofoutstanding debt was roughly $878.7 million, which consisted of(i) $490.6 million principal amount of debt under a 2009 creditagreement, (ii) $7.5 million principal amount of 2011 notes, (iii)$24.8 million principal amount of PIK Notes, and (iv) $355.8million principal amount of subordinated notes.

Road to Bankruptcy

Christopher Polimeni, the executive vice president for finance andplanning, chief financial officer and treasurer of AMI, said,"Recent increases in the retail price of gasoline, increases incredit card, home mortgage, and other borrowing costs, anddeclines in housing values have contributed to declines in overallconsumer confidence and discretionary spending. The resultingdecline in consumer spending on publications sold at retailers'checkout counters, which target demographics that happen to bepredominantly affected by challenging economic conditions, hasadversely affected the Debtors' businesses, operating results andprofitability."

He added that as a result of, among other things, the adverseimpact current market conditions have had on the Debtors'businesses, the Debtors' free cash flow and ability to satisfytheir ongoing obligations under the 2009 Credit Agreement and theindentures governing each of the Notes have been restricted. Forexample, the Debtors have accrued but not paid cash interest onany of the Notes since they were issued in January 2009.

In order to delever their balance sheet and improve free cashflow, the Debtors engaged in a number of restructuring initiativesprior to the Petition Date. In February 2009, AMI completed atender offer that reduced debt by about $230 million. In July2010, it began another exchange offer that would have cut debt byat least $200 million. The offer was extended several timesthrough Nov. 1, when it was terminated in favor of thepre-packaged Chapter 11.

The Prepackaged Plan

The Debtors filed a prepackaged plan of reorganization consistentwith the terms of the restructuring support agreement the Companysigned with bondholders holding more than 75% of their bond debtand secured lenders holding more than 70% of their bank debt.

The Prepackaged Plan, which has been approved by the majority ofcreditors entitled to vote on the Prepackaged Plan, contemplatesthat, among other things, holders of secured term facility claimswill receive a combination of cash and new second lien notes;holders of secured revolver claims will be paid in full; holdersof subordinated notes will receive stock in the reorganizedCompany; and holders of trade claims will be paid in full.

A copy of the disclosure statement explaining the proposedprepackaged plan of reorganization is available for free at:

In conjunction with the Chapter 11 filing, the Company also fileda variety of motions to continue to support its employees,customers and vendors during the financial restructuring process.The Company has filed motions seeking permission to, among otherthings, continue employee wage and benefits programs; honorcurrent customer programs without interruption; and pay tradecreditors in the ordinary course of business. American Mediaexpects that cash on hand and cash from operating activities willbe adequate to fund its cash needs as it proceeds with itsfinancial restructuring and therefore does not intend to seekdebtor-in-possession financing.

The First Day Pleadings include motions to assume theRestructuring Support Agreement and enter into exit financing.

The Debtors have arranged terms of new financing they wouldrequire to consummate their restructuring and fund ongoing workingcapital needs. The financing package will consist of:

$385 million new first lien secured financing; $140 million new second lien secured financing; and $40 million new first lien secured revolving credit facility.

About American Media

Based in New York, American Media, Inc., publishes celebrityjournalism and health and fitness magazines in the U.S. Theseinclude Star, Shape, Men's Fitness, Fit Pregnancy, Natural Health,and The National Enquirer. In addition to print properties, AMImanages 14 different Web sites. The company also ownsDistribution Services, Inc., the country's #1 in-store magazinemerchandising company.

Type of Business: American Media, Inc., publishes celebrity journalism and health and fitness magazines in the U.S. These include Star, Shape, Men's Fitness, Fit Pregnancy, Natural Health, and The National Enquirer. In addition to print properties, AMI manages 14 different Web sites. The company also owns Distribution Services, Inc., the country's #1 in-store magazine merchandising company.

Chapter 11 Petition Date: November 17, 2010

Bankruptcy Court: U.S. Bankruptcy Court Southern District of New York (Manhattan)

Estimated Assets & Debts: AMI estimated assets of $0 to $50,000 and debts of $500 million to $1 billion in its Chapter 11 petition. AMO, the operating unit of AMI, estimated assets of $100 million to $500 million and debts of $500 million to $1 billion in its Chapter 11 petition.

The petition was signed by Christopher Polimeni, executive vicepresident, CFO and treasurer.

AMIDEE CAPITAL: Wins OK to Sell All Assets to Burke Oak for $2.1MM------------------------------------------------------------------The U.S. Bankruptcy Court for the Southern District of Texasauthorized Amidee Capital Group, Inc., to sell substantially allof its assets to Burke Oak Point Apartments, LLC.

The Debtors related that Sterling Bank's $1,990,000 offer was thehighest and best offer for the assets submitted at the auction.After the auction, the Debtor, Sterling Bank and Burke Oak reachedan agreement to sell the assets to Burke Oak for $2,100,000.

The Debtors has now designated the offer submitted by SterlingBank as the next highest offer for the assets and that SterlingBank is the reserve bidder for the assets.

The sale was free and clear of liens, claims, interests, andencumbrances.

AMSCAN HOLDINGS: Posts $4.6-Mil. Net Profit in 3rd Quarter----------------------------------------------------------Amscan Holdings Inc. filed its quarterly report on Form 10-Q,reporting net income of $4.60 million on $362.81 million of totalrevenues for the three months ended Sept. 30, 2010, compared withnet income of $3.08 million on $341.10 million of total revenuesfor the same period a year ago.

The Company's balance sheet at Sept. 30, 2010, showed$1.71 billion in total assets, $1.17 billion in total liabilities,and stockholder's equity of $524.32 million.

Based in Road Elmsford, New York, Amscan Holdings, Inc., designs,manufactures, contracts for manufacture and distributes partygoods, including paper and plastic tableware, metallic balloons,accessories, novelties, gifts and stationery. The Company alsooperates retail party goods and social expressions supply storesin the United States under the names Party City, Party America,The Paper Factory, Halloween USA and Factory Card & Party Outlet,and franchises both individual stores and franchise areasthroughout the United States and Puerto Rico principally under thenames Party City and Party America. The Company is a wholly ownedsubsidiary of AAH Holdings Corporation.

At the end of September 2010, Standard & Poor's Rating Servicesplaced its 'B' corporate credit rating and all other relatedratings on Elmsford, N.Y.-based Amscan Holdings Inc. onCreditWatch with positive implications. Standard & Poor's couldeither raise or affirm the rating when it resolves the CreditWatchlisting.

AMSCAN HOLDINGS: Moody's Assigns 'B2' Rating to $675 Mil. Loan--------------------------------------------------------------Moody's Investors Service assigned a B2 rating to Amscan Holdings,Inc.'s proposed $675 million Senior Secured Term Loan. Proceedsfrom the new term loan will be used to repay in full the company'sexisting $342 million secured term due in 2013 and the balance ofproceeds will be used to fund a dividend to Amscan's owners.Moody's affirmed all other ratings, including the B2 CorporateFamily Rating and the Caa1 rating assigned to the company$175 million Senior Subordinated Notes due 2014. The ratingoutlook remains stable. Upon closing of the new term loanfacility, Moody's will withdraw the B1 rating currently assignedto the senior secured term loan due in 2013

This rating will be withdrawn upon closing of the new term loanfacility:

* $342 million senior secured term loan due 2013 at B1 (LGD 3, 41%)

Ratings Rationale

Amscan's B2 Corporate Family Rating reflects its high financialleverage, aggressive financial policies, and narrow businessfocus. The rating is supported by the company's overall size inthe fragmented party supply industry. While the party goods andrelated accessory category is highly discretionary, it isgenerally stable, as a high portion of sales are tied to regularlyrecurring events, such as birthdays, and the majority of productsare sold at moderate price points.

The B2 rating assigned to the company's senior secured term loanfacility reflects its first lien position on substantially allassets of the company, other than accounts receivable andinventory which are pledged on a first lien basis to the company's(unrated) $325 million asset based credit facility.

The stable outlook reflects Moody's expectation that the companywill maintain its market position and will continue to showpositive trends in sales and operating performance. The stableoutlook also incorporates expectations that the company willmaintain aggressive financial policies.

Ratings could be upgraded if Amscan can deleverage its balancesheet while maintaining moderate financial policies.Quantitatively ratings could be upgraded if EBITA /interestexpense is sustained above 1.5 times, and debt / EBITDA issustained below 5.25 times.

Ratings could be downgraded if the company's good liquidityprofile were to erode, or if heightened competition began tonegatively impact operating margins. Quantitatively, ratingscould be lowered if debt/EBITDA is sustained above 6.25 times orif interest coverage falls below 1.25 times.

Headquartered in Elmsford, NY, Amscan Holdings is a designer,manufacturer, distributor and retailer of party goods and relatedaccessories. The company's retail brands include Party City,Party America, Halloween City, and Factory Card & Party Outlet.Revenues are approximately $1.5 billion.

The Company's balance sheet at Sept. 30, 2010, shows$705.64 million in total assets, $164.22 million in total currentliabilities, $525.83 million in long-term debt, $50.58 millionin post-retirement benefits, $89.43 million in accrued pension,$6.08 million in other long-term liabilities, and a stockholder'sdeficit of $99.63 million.

ASSOCIATED BANC: S&P Affirms 'BB-' Counterparty Credit Rating-------------------------------------------------------------Standard & Poor's Ratings Services said that it revised itsoutlook on Associated Banc Corp. and banking subsidiary AssociatedBank N.A. to positive from stable. At the same time, S&P affirmedits ratings on the companies, including the 'BB-' counterpartycredit rating on Associated and the 'BB+' on the bankingsubsidiary.

The rating action reflects S&P's opinion that Associated's creditquality will continue to improve along with significant declinesin loan loss provisioning and nonperforming assets since lastyear, resulting in a return to profitability.

That said, management must demonstrate sustainability in theimprovement of its asset quality and profitability metrics inorder to return to investment-grade ratings. In addition,Associated's strong capital helps to support the rating.

In the third quarter of 2010, Associated reported its first netprofit after three consecutive quarters of losses, although it isstill in a net loss position for 2010. The $37 million year-to-date loss compares with last year's $19 million profit for thesame period. S&P anticipate lower loan loss provisions andpositive earnings in the near term, as management continuesremoving problem assets and declining credit quality subsides.However, given the prolonged period of low rates and soft loandemand, in S&P's opinion, the net interest margin and,consequently, profitability, remain under pressure.

S&P believes Associated is balancing its portfolio toward a moretraditional mix compared with its legacy focus of concentrating incommercial real estate (CRE)-related assets. While S&P recognizesthe improvements in asset quality during 2010, some asset qualitymetrics remain high. In fact, while S&P recognize management'sefforts to strengthen both its balance sheet and the need forimproved risk management framework, S&P also observes that CREnonperformers have increased 40%, to $300 million as of Sept. 30,2010, compared with Sept. 30, 2009, while the constructionportfolio declined significantly, by 54% during the same time. AtSept. 30, overall NPAs were 7% (including restructured loans) oftotal loans and other real estate owned and potential problemloans remained elevated at $1.1 billion, even though they alsodeclined 30% from their 2009 year-end peak. The decline in NPAsfrom the first quarter peak was aided by two bulk loan salestotaling $434 million in CRE and residential construction NPLs.S&P expects that the disposal of problem assets will continue inthe fourth quarter and that credit quality will keep improving.Further, annualized NCOs were still high at 3.39%, but$85.4 million of the $110 million write-downs for the quarterwere related to commercial loan sales.

While weak economic conditions persist, Associated's fairly stableregional economy, its improving problem loan workout resolutions,and its 4.22% loan loss reserves should assuage any significantcapital erosion. S&P believes that the bank's problems likelyhave peaked, and that credit costs could subside in the next twoto three quarters while other metrics move toward more normalizedlevels. Furthermore, new management's long-term strategy toreduce the company's overall risk by shifting away from the morerisky CRE and construction and into commercial and industrial andhigh-quality residential lending should also benefit futureprofitability.

AUTOTRADER.COM INC: Moody's Assigns 'Ba3' Rating to Senior Loan---------------------------------------------------------------Moody's Investors Service assigned AutoTrader.com, Inc.'s newsenior secured bank facility a Ba3 rating. The company'sexisting Corporate Family Rating is Ba3 and its Probability ofDefault Rating is B1. The new bank facility includes a proposed$150 million revolving credit facility, a $200 million Term LoanA and a $600 million Term Loan B. The new facility will replacethe company's existing $625 million of bank facilities. Thecredit facilities will be secured by a first priority interest inand lien on substantially all of ATC's assets. Further, the debtwill be guaranteed by all existing and future domesticsubsidiaries. The new rating assignments are:

The new larger bank facility is being put in place following theannounced acquisition of Kelly Blue Book and the recentacquisition of vAuto. The company plans to finance theacquisitions with a combination of debt and equity. Consideringthe incremental debt being added and the EBITDA contribution ofboth Kelly Blue Book and vAuto, Moody's does not anticipate thatATC will exceed 4.0x leverage (including Moody's standardadjustments) pro forma for the transaction, and Moody'santicipates that leverage will decline from a combination ofEBITDA growth and debt reduction such that leverage will declineto around 3.0x by the end of 2011. Moody's anticipates that thenew facility will contain financial maintenance covenants limitingtotal leverage to 4.5x and stepping down to 3.0x, and a minimumfixed charge coverage ratio of 2.25x stepping up to 3.0x. Moody'santicipates that the financial covenants will step down graduallyto provide a balance between disciplined debt reduction and yetallowing for adequate compliance cushion. The Kelly Blue Bookacquisition is expected to close by the end of the year.

ATC's Ba3 CFR is largely driven by the strong cash flows thecompany generates from its position as a leading seller of digitalautomotive advertising, its significant level of subscriptionbased revenues largely derived from automotive listings andcontrol by fiscally conservative Cox Enterprises Inc. ("CEI" -Baa3 senior unsecured). The rating incorporates Moody'sexpectation that ATC will grow both organically and throughacquisitions and that it will sustain debt-to-EBITDA leverage(incorporating Moody's standard adjustments) between 2.5x and 3.0xover the long term. These strengths, however, only partiallyoffset ATC's key business risks including the company's relativelyshort operating history, small scale, narrow business focus andvulnerability to the health of automobile sales, mainly used autoswhich is driven by consumer spending, particularly in the futureas organic growth moderates. In addition, there is a significantlevel of competition in the sale of digital automotive advertisingand listings. Further, Moody's believes there are only moderateentry barriers.

ATC's CFR could be upgraded to Ba2 if CEI maintains control andthe company were to commit to lower sustained leverage bringingits debt-to-EBITDA leverage to under 1.5x. Further upward ratingmomentum beyond Ba2 would be constrained by ATC's short operatinghistory, the level of business risk associated with its purelyadvertising reliant business model and lack of advertising nichediversity.

A downgrade could occur if debt-to-EBITDA leverage were to besustained above 3.0x and CEI did not remain in control thecompany. The rating could also be downgraded if leverage issustained above 4.0x while remaining under CEI's control.

The last rating action on AutoTrader.com was on May 12, 2010 whenMoody's assigned first time ratings to the company.

AutoTrader.com's ratings were assigned by evaluating factorsMoody's believe are relevant to the credit profile of the issuer,such as i) the business risk and competitive position of thecompany versus others within its industry, ii) the capitalstructure and financial risk of the company, iii) the projectedperformance of the company over the near to intermediate term, andiv) management's track record and tolerance for risk. Theseattributes were compared against other issuers both within andoutside of AutoTrader.com's core industry and AutoTrader.com'sratings are believed to be comparable to those of other issuers ofsimilar credit risk.

AutoTrader.com, Inc., with its headquarters in Atlanta, GA, is theInternet's leading automotive classifieds marketplace and consumerinformation website. AutoTrader.com is controlled by CoxEnterprises, Inc. (Baa3 senior unsecured). ATC is controlled byCox Enterprises, Inc. with ownership of over two-thirds of thecompany. The remainder of the shares are held by ProvidenceEquity Partners, Kleiner Perkins, ATC's management and otherstockholders (less than 2%).

BARBER GLASS: Grant Thornton Named Receiver & Manager-----------------------------------------------------Barber Glass was placed into receivership last week, according toreporting by John Edwards of Ontario-based Simcoe.com.

Simcoe reports that an Ontario Superior Court of Justice documentindicates that Bank of Montreal filed the application under theBankruptcy and Insolvency Act.

According to the report, Grant Thornton Limited has been appointedas receiver and manager of all the assets, undertakings andproperties of the company.

Simcoe relates that Jeff Wilkins, operations manager of BarberGlass' Collingwood plant, said the firm's 45 employees were letgo. Mr. Wilkins also said that the plant is trying to put aproposal together to the receiver and the bank to finish what theyhave in production.

Collingwood Mayor Chris Carrier said the Economic Developmentdepartment will be assisting the employees impacted by theclosure, according to the report.

John Barber, whose family founded the company more than 127 yearsago, said the Company was "working diligently to find financingsolutions, including through existing and new lenders, suppliersand government agencies, which would satisfy all parties. Thecompany was close to an interim arrangement with the support ofits suppliers and customers but was unable to get its operatinglender onside," the report notes.

The report also said that according to Mr. Barber, "[A] majorequipment supplier to the Collingwood facility had problems insolving their equipment issues resulting in a delay in the startupof commercial production for six months." In addition, he saidthat "the soft economy and the rising Canadian dollar affectedasset valuations and sales."

About Barber Glass

Barber Glass operates a plant on Mountain Road, in Collingwood,Ontario, Canada. The Company launched a $24 million expansion ofthe former Alcoa Wheel Plant and was one of only two companies inNorth America capable of manufacturing oversized, insulated glassfor the architectural market. The Company employed 45 people.

"This action is brought to recover the fictitious profit amount sothat this customer property can be equitably distributed among allthe victims" of Madoff's fraud, Mr. Picard said in the suit filedtoday in U.S. Bankruptcy Court in Manhattan, according toBloomberg.

The new suits follow 19 others filed by Mr. Picard seeking torecover more than $15.5 billion from parties related to Mr.Madoff, including his friends and family, and from so-calledfeeder funds, which directed most or all of their clients' moneyto Mr. Madoff.

Bloomberg notes both Messrs. Weiss and Bershad pleaded guilty toracketeering charges over a client-kickback scheme and left thelaw firm, which has changed its name to Milberg LLP. Both Messrs.Weiss and Bershad, who represented plaintiffs in securities-fraudcases, faced federal charges alleging they secretly paid clientsto bring such lawsuits. Prosecutors argued the men, whoindustrialized the filing of securities class-action cases, rackedup at least $251 million in fees from 1979 to 2005.

"I have no prior information about this and I have no comment,"Mr. Weiss, 75, told Bloomberg in a telephone interview from BocaRaton, Florida.

On December 15, 2008, the Honorable Louis A. Stanton of the U.S.District Court for the Southern District of New York granted theapplication of the Securities Investor Protection Corporation fora decree adjudicating that the customers of BLMIS are in need ofthe protection afforded by the Securities Investor Protection Actof 1970. The District Court's Protective Order (i) appointedIrving H. Picard, Esq., as trustee for the liquidation of BLMIS,(ii) appointed Baker & Hostetler LLP as his counsel, and (iii)removed the SIPA Liquidation proceeding to the Bankruptcy Court(Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr.Picard has retained AlixPartners LLP as claims agent.

On April 13, 2009, former BLMIS clients filed an involuntaryChapter 7 bankruptcy petition against Bernard Madoff (Bankr.S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. Thepetitioning creditors -- Blumenthal & Associates Florida GeneralPartnership, Martin Rappaport Charitable Remainder Unitrust,Martin Rappaport, Marc Cherno, and Steven Morganstern -- assertUS$64 million in claims against Mr. Madoff based on the balancescontained in the last statements they got from BLMIS.

On April 14, 2009, Grant Thornton UK LLP as receiver placed MadoffSecurities International Limited in London under bankruptcyprotection pursuant to Chapter 15 of the U.S. Bankruptcy Code(Bankr. S.D. Fla. 09-16751).

The Chapter 15 case was later transferred to Manhattan. In June2009, Judge Lifland approved the consolidation of the Madoff SIPAproceedings and the bankruptcy case.

Judge Denny Chin of the U.S. District Court for the SouthernDistrict of New York on June 29, 2009, sentenced Mr. Madoff to150 years of life imprisonment for defrauding investors in UnitedStates v. Madoff, No. 09-CR-213 (S.D.N.Y.)

As of October 29, 2010, a total of US$5.69 billion in claims byinvestors has been allowed, with US$741.2 million to be paid bythe Securities Investor Protection Corp. Investors are expectedto receive additional distributions from money recovered by Mr.Picard.

BIOFUEL ENERGY: Posts $1.8 Million Net Loss in Q3 2010------------------------------------------------------Biofuel Energy Corp. filed its quarterly report on Form10-Q, reporting a net loss of $1.8 million on $114.7 million ofrevenue for the three months ended September 30, 2010, comparedwith a net loss of $8.4 million on $91.1 million of revenue forthe same period last year.

The Company has experienced declining liquidity and as ofSeptember 30, 2010 has $32.6 million of long-term debt due withinthe next year, including a $19.4 million Bridge Loan, the Companysaid in the filing. The Company is restricted by the terms of itsSenior Debt facility from using the funds generated by itsoperating subsidiaries to repay the Bridge Loan.

In connection with the Bridge Loan agreement, on September 24,2010, the Company entered into a Rights Offering Letter Agreementwith the Bridge Loan lenders, who are its two largeststockholders, pursuant to which the Company agreed to use itscommercially reasonable best efforts to commence and complete arights offering. BioFuel Energy, LLC (the "LLC"), also intends tocommence and complete a concurrent private placement of LLCinterests.

"If we are unable to raise sufficient proceeds from the rightsoffering, the LLC's concurrent private placement, or from othersources, we may be unable to continue as a going concern, whichcould potentially force us to seek relief through a filing underthe U.S. Bankruptcy Code."

The Company's balance sheet at September 30, 2010, showed$329.7 million in total assets, $274.6 million in totalliabilities, and stockholders' equity of $55.1 million.

As reported in the Troubled Company Reporter on March 31, 2010,Grant Thornton LLP, in Denver, expressed substantial doubt aboutthe Company's ability to continue as a going concern, followingits 2009 results. The independent auditors noted that the Companyhas experienced declining liquidity and has $16.5 million ofoutstanding working capital loans that mature in September 2010.

Denver, Colo.-based BioFuel Energy Corp. (Nasdaq: BIOF)-- http://www.bfenergy.com/-- currently has two 115 million gallons per year ethanol plants in the Midwestern corn belt. TheCompany's goal is to become a leading ethanol producer in theUnited States by acquiring, developing, owning and operatingethanol production facilities.

The Company has not generated revenues and has incurred net lossesof approximately $2,976,000 and $1,318,000 during the years endedJune 30, 2010 and 2009, respectively.

While the Company has not recognized any operating revenues forthe past two fiscal years, the Company anticipates that futurerevenues will be generated from product sales, credit sales,technology license fees, annual waste treatment fees and/or directownership interests in integrated projects.

The Company's balance sheet at Sept. 30, 2010, showed$1.93 million in total assets, $1.14 million in total liabilities,$2.52 million of Series B Redeemable Convertible Preferred stock,and a stockholders' deficit of $1.72 million.

GHP Horwath, P.C., in Denver, Colo., expressed substantial doubtabout the Company's ability to continue as a going concern. Theindependent auditors noted that the Company has not generatedrevenue and has suffered recurring losses from operations.

BIOVEST INTERNATIONAL: Emerges from Chapter 11 Reorganization-------------------------------------------------------------Biovest International, Inc. has successfully completed itsreorganization, and pursuant to Biovest's Plan of Reorganizationapproved by the bankruptcy court, the Company has now formallyexited Chapter 11 as a fully restructured organization.

According to Samuel S. Duffey, Biovest's President & GeneralCounsel, "Today marks an exciting new beginning for Biovest as wehave emerged as a much stronger, more financially secureorganization. As such, we are preparing to report significant newmilestones that we have been working towards. Even beforeyearend, Biovest is planning to present important new Phase IIIdata for BiovaxID(R), its personalized lymphoma vaccine, at theASH Annual Meeting in December and also report new revenue-generating contract manufacturing agreements for biologicsproduction to be performed at its cell culture center. Theseevents should cap off a highly successful year and set the stagefor 2011 and beyond."

As now deemed effective, the Plan of Reorganization restructuredBiovest's balance sheet by reducing outstanding debt, reschedulingdebt payment obligations and reducing operating expenses. Underthe Plan, stockholders retained their common shares. An importantpart of the confirmed restructuring was a previously announced $7million financing for which ROTH Capital Partners, LLC acted asthe exclusive placement agent. Structural changes to certainagreements are now in effect including the reduction of theoutstanding royalty on BiovaxID sales from 35% to 6.30%, thusexpected to enhance Biovest's commercial and partneringopportunities.

About Biovest International

Based in Tampa, Florida, Biovest International Inc. (OTCQB:BVTI) -- http://www.biovest.com/-- is an emerging leader in the field of active personalized immunotherapies targeting life-threatening cancers of the blood system. Developed incollaboration with the National Cancer Institute, BiovaxID(R) is apatient-specific, cancer vaccine, demonstrating statisticallysignificant Phase III clinical benefit by prolonging disease-freesurvival in vaccinated patients suffering from indolent follicularnon-Hodgkin's lymphoma, confirming a previous positive Phase IIstudy.

As of June 30, 2010, Biovest is 75% owned subsidiary of AccentiaBiopharmaceuticals Inc.

(a) to direct the production of documents and the examination of individuals, corporate designees or representatives of these "investigation parties":

* the Debtors;

* Wilmington Trust FSB, as administrative agent and collateral agent for the lenders party to the Senior Secured, Super-Priority Debtor-in-Possession Revolving Credit Agreement;

* U.S. Bank National Association, as trustee and collateral agent for the beneficial owners of 11.75% Senior Secured Notes due 2014; and

* the entities, known as the Backstop Lenders, which are identified on the DIP Credit Agreement, in their capacity as DIP Lenders and signatories to the Plan Support Agreement dated as of September 22, 2010; and

(b) for authority to issue other subpoenas for testimony and the production of documents as it deems appropriate in furtherance of its investigation of the prepetition acts, conduct, property, liabilities and financial condition of the Debtors and their estates, including:

* the negotiation of the PSA and any alternative proposals for the recapitalization, restructuring or other disposition of the Debtors' business and assets;

* the refinancing of Blockbuster's prior secured credit facility with the Senior Secured Notes in October 2009;

* holdings and transfers of the Senior Secured Notes or any equity security of Blockbuster by the Backstop Lenders;

* valuation of the Debtors' assets and business lines; and

* the execution of forbearance agreements among Blockbuster and the Senior Secured Noteholders.

Rule 2004 discovery of the Investigation Parties is necessary inorder for the Creditors Committee to carry out its statutoryauthority to investigate the Debtors' financial affairs anddiscover any assets or expose any conduct that may give rise topotential causes of action of the bankruptcy estates, Jay R.Indyke, Esq., at Cooley LLP, in New York, tells Judge Lifland.

The need to understand the Debtors' prepetition affairs and thevalidity of prepetition debt is heightened in the bankruptcy casesgiven the terms of the PSA, which sets forth the structure of aplan of reorganization of the Debtors premised upon a conversionof substantially all of their prepetition secured debt to equityin reorganized Blockbuster and provides, at best, a de minimisreturn to all of the remaining creditors, Mr. Indyke argues.

The Debtors and the Backstop Lenders have already agreed to workcooperatively with the Creditors Committee to provide access tothe information needed to perform a fulsome investigation, Mr.Indyke discloses. Nevertheless, he asserts, given the condensedtime frame under which the Creditors Committee is required tocomplete its investigation under the terms of the Final DIP Order,the Creditors Committee is compelled to file the request to ensurethe conduct of a thorough investigation aimed at maximizing thevalue of the estates.

The production of documents by, and oral examination of, theInvestigation Parties are critical to the Creditors Committee'sinvestigation because a number of creditors and equity holdershave already voiced their beliefs through pleadings and otherdocuments that the Debtors and certain Senior Secured Noteholdersengaged in actionable conduct prior to the filing of the cases,Mr. Indyke contends. He points out that the Creditors Committeeis best positioned to investigate prepetition conduct oractivities, which may have affected the Debtors' capital structureor precipitated the bankruptcy filings.

Mr. Indyke adds that the discovery sought is tailored to thefactual matters raised or implicated by the issues and events thatprecipitated the cases, and compliance with these requests willnot unduly burden the Investigation Parties.

The Court will convene a hearing on November 24, 2010, to considerthe request.

About Blockbuster Inc.

Based in Dallas, Texas, Blockbuster Inc. (Pink Sheets: BLOKA,BLOKB) -- http://www.blockbuster.com/-- is a global provider of rental and retail movie and game entertainment. It has a libraryof more than 125,000 movie and game titles. Blockbuster said ithad assets of $1,017,035,832 and debts of $1,464,939,759 as ofAugust 1, 2010.

A steering group of senior secured noteholders is represented byJames P. Seery, Esq., and Paul S. Caruso, Esq., at Sidley AustinLLP. U.S. Bank National Association as trustee and collateralagent for the senior secured notes is represented by DavidMcCarty, Esq., and Kyle Mathews, Esq., at Sheppard Mullin Richter& Hampton LLP. BDO Consulting is the financial advisor for U.S.Bank.

Lenders led by Wilmington Trust FSB are providing the DIPfinancing. The DIP Agent is represented by Peter Neckles, Esq.and Alexandra Margolis, Esq., at Skadden, Arps, Slate, Meagher &Flom LLP, in New York.

The Official Committee of Unsecured Creditors has retained CooleyLLP as its counsel.

Blockbuster's non-U.S. operations and its domestic andinternational franchisees, all of which are legally separateentities, were not included in the filings and are not parties tothe Chapter 11 proceedings.

BLOCKBUSTER INC: Court Sets Dec. 22 General Claims Bar Date-----------------------------------------------------------The United States Bankruptcy Court for the Southern District ofNew York established:

-- December 22, 2010, as the deadline by each person or entity must file proofs of claim based on prepetition claims against the Debtors; and

-- March 22, 2011, as the deadline for governmental units to file Proofs of Claim against the Debtors.

Subject to certain exceptions, any person or entity, who holds aclaim against a Debtor that arose prepetition, and who desires toshare in any distribution made in the Chapter 11 cases, must filea Proof of Claim by the applicable Bar Date and in strictaccordance with the requirements and procedures set forth in theorder.

Judge Burton Lifland ruled that all Proofs of Claim filed againstthe Debtors must substantially conform to the approved Proof ofClaim Form and must be received by the applicable Bar Date by theofficial noticing and claims agent in the cases, Kurtzman CarsonConsultants, or the Court.

These persons are not required to file a Proof of Claim by theapplicable Bar Date:

(a) any person or entity:

* whose claim is listed on the Debtors' schedules of assets and liabilities, and whose claim is not described as "disputed," "contingent," or "unliquidated"; and

* who does not dispute the amount or nature of the claim set forth in the Schedules;

(b) any person or entity, whose claim has been paid in full by the Debtors;

(c) any person or entity that holds an interest in the Debtors, which interest is based exclusively on the ownership of common or preferred stock, membership interests, partnership interests, or warrants or rights to purchase, sell or subscribe to a security or interest, provided that interest holders, who wish to assert claims against the Debtors that arise out of or relate to the ownership or purchase of an interest, must file Proofs of Claim by the applicable Bar Date, unless another exception applies;

(d) any person or entity that holds a claim that has been allowed by an order of the Court entered by the applicable Bar Date;

(e) any holder of a claim for which a separate deadline is fixed by the Court;

(f) any holder of a claim, who has already properly filed a Proof of Claim with the Clerk of the Court or KCC, against the Debtors utilizing a claim form that substantially conforms to the Proof of Claim Form;

(g) any person or entity that asserts a claim under Sections 503(b) or 507(a) of the Bankruptcy Code as an administrative expense of the cases, other than a holder of a Section 503(b)(9) Claim; and

(h) any person or entity, whose claim is limited exclusively to the repayment of principal, interest and other fees and expenses on or under any agreements governing any debt security issued by any of the Debtors pursuant to an indenture if the indenture trustee or similar fiduciary under the applicable indenture files a Proof of Claim against the applicable Debtor on account of all Debt Claims against the Debtor under the applicable Debt Instruments, provided that any holder of a Debt Claim wishing to assert a claim arising out of or relating to a Debt Instrument, other than a Debt Claim, will be required to file a Proof of Claim with respect to the claim by the Bar Date, unless another exception applies.

Subject to modification by further order of the Court, any personor entity that holds a claim arising from the rejection of anexecutory contract or unexpired lease must file a Proof of Claimbased on the rejection by the later of (i) the applicable BarDate, or (ii) the date, which is 45 days following the effectivedate of the rejection.

A separate Proof of Claim must be filed against each Debtor that aperson or entity asserts a claim against.

Any holder of a claim against the Debtors, who is required, butfails to file a proof of the claim in accordance with the Order bythe applicable Bar Date will be forever barred, estopped andenjoined from asserting the claim against the Debtors, and theDebtors and their property will be forever discharged from any andall indebtedness or liability with respect to the claim. Theholder will not be permitted to vote to accept or reject anyChapter 11 plan filed in the cases, or participate in anydistribution on account of the claim or to receive further noticesregarding the claim.

If the Debtors amend or supplement their Schedules subsequent toNovember 10, 2010, the Debtors will give notice of any amendmentor supplement to the affected holders of claims, and the holderswill be afforded 30 days from the date on which the notice isgiven to file Proofs of Claim in respect of their claims or beforever barred from doing so.

Judge Lifland clarified that nothing in the Order will prejudicethe right of the Debtors or any other party-in-interest to disputeor assert offsets or defenses as to the nature, amount, liability,classification, or otherwise, of any claim reflected in theSchedules or any Proof of Claim filed against any Debtor. Headded that any person or entity, who desires to rely on theSchedules will have the responsibility for determining that theclaim is accurately listed in the Schedules.

About Blockbuster Inc.

Based in Dallas, Texas, Blockbuster Inc. (Pink Sheets: BLOKA,BLOKB) -- http://www.blockbuster.com/-- is a global provider of rental and retail movie and game entertainment. It has a libraryof more than 125,000 movie and game titles. Blockbuster said ithad assets of $1,017,035,832 and debts of $1,464,939,759 as ofAugust 1, 2010.

A steering group of senior secured noteholders is represented byJames P. Seery, Esq., and Paul S. Caruso, Esq., at Sidley AustinLLP. U.S. Bank National Association as trustee and collateralagent for the senior secured notes is represented by DavidMcCarty, Esq., and Kyle Mathews, Esq., at Sheppard Mullin Richter& Hampton LLP. BDO Consulting is the financial advisor for U.S.Bank.

Lenders led by Wilmington Trust FSB are providing the DIPfinancing. The DIP Agent is represented by Peter Neckles, Esq.and Alexandra Margolis, Esq., at Skadden, Arps, Slate, Meagher &Flom LLP, in New York.

The Official Committee of Unsecured Creditors has retained CooleyLLP as its counsel.

Blockbuster's non-U.S. operations and its domestic andinternational franchisees, all of which are legally separateentities, were not included in the filings and are not parties tothe Chapter 11 proceedings.

BLOCKBUSTER INC: M. Rudd Seeks Appointment of Equity Committee--------------------------------------------------------------Mark L. Rudd, a shareholder of the Debtors who resides at 19710Parkville Street, in Livonia, Michigan, filed with the Court aletter in opposition to the bankruptcy filing of the Debtors, andto have his voice heard in the Chapter 11 proceeding.

"I intend to make a reasonable request that an equity committee beformed to represent the common shareholder; based on the groundsthat bankruptcy was either unnecessary or intentional," Mr. Ruddsays. He asserts that an equity committee could convince theCourt that there is now, or, soon will be sufficient revenue topay off debt or, at the very least, enough apparent value tocomplete a debt for equity exchange that leaves at least 51% ofthe equity with the existing shareholders.

"My aim is to convince the court that there is a group ofshareholders who are regular people who invested in Blockbusterbecause they believed in the company and the name, as an Americaninstitution," Mr. Rudd tells the Court. "This minority ofshareholders are the ones that need an equity committee; as themajority of equity is probably now held by hedge funds who arefriendly with the secured debt holders," he continues.

In support of his request for appointment of equity and hisassessment of the Debtors' bankruptcy, Mr. Rudd attachedBlockbuster Inc.'s Management Presentation dated June 2010,which was officially filed with the U.S. Securities andExchange Commission on June 11, 2010 as Form DEFA14A.

Mr. Rudd also argues, among other things, that "Carl Icahn and agroup of hedge funds should not be allowed to take a very valuablecompany away from its owners, just because they were able tomanipulate the system and maneuver Blockbuster into anunnecessary/forced bankruptcy where they get it all."

About Blockbuster Inc.

Based in Dallas, Texas, Blockbuster Inc. (Pink Sheets: BLOKA,BLOKB) -- http://www.blockbuster.com/-- is a global provider of rental and retail movie and game entertainment. It has a libraryof more than 125,000 movie and game titles. Blockbuster said ithad assets of $1,017,035,832 and debts of $1,464,939,759 as ofAugust 1, 2010.

A steering group of senior secured noteholders is represented byJames P. Seery, Esq., and Paul S. Caruso, Esq., at Sidley AustinLLP. U.S. Bank National Association as trustee and collateralagent for the senior secured notes is represented by DavidMcCarty, Esq., and Kyle Mathews, Esq., at Sheppard Mullin Richter& Hampton LLP. BDO Consulting is the financial advisor for U.S.Bank.

Lenders led by Wilmington Trust FSB are providing the DIPfinancing. The DIP Agent is represented by Peter Neckles, Esq.and Alexandra Margolis, Esq., at Skadden, Arps, Slate, Meagher &Flom LLP, in New York.

The Official Committee of Unsecured Creditors has retained CooleyLLP as its counsel.

Blockbuster's non-U.S. operations and its domestic andinternational franchisees, all of which are legally separateentities, were not included in the filings and are not parties tothe Chapter 11 proceedings.

BLOCKBUSTER INC: Reports $54.1 Mil. Loss for Q3 2010----------------------------------------------------Blockbuster Inc. filed with the Securities and Exchange Commissionon November 11, 2010, the Company's Form 10-Q for the quarterended Oct. 3, 2010.

Dennis McGill, Blockbuster's executive vice president and chieffinancial officer, signed the report, disclosing a third-quarternet loss of $54.1 million.

According to Mr. McGill, Blockbuster:

* incurred a net loss from operations for the 39 weeks and fiscal year ended October 3, 2010, and January 3, 2010;

* had negative working capital as of October 3, 2010; and

* had a stockholders' deficit as of October 3, 2010, and January 3, 2010.

"In addition, our recent Chapter 11 filing and the increasinglycompetitive industry conditions under which we operate havenegatively impacted our results of operations and cash flows andmay continue to do so in the future," Mr. McGill said. "Thesefactors raise substantial doubt about our ability to continue as agoing concern," he added.

A full-text copy of Blockbuster's Form 10-Q filed with the SEC isavailable for free at:

Effect of exchange rate changes on cash 0.2 -------Net decrease in cash and cash equivalents (68.0)Cash and cash equivalents at beginning of period 188.7 -------Cash and cash equivalents at end of period $120.7 =======

Outlook

Blockbuster's quarter results disclose that for the remainder of2010, it will continue to be committed to its goal oftransformation to a multi-channel platform while ensuring a smoothtransition of its business in Chapter 11.

Furthermore, it expects to continue facing the challenges ofincreased industry competition and fragmentation as well asbalancing the decline of a single channel with the ascension ofemerging channels, like vending and digital.

"Factors contemplated in our current plans for the remainder of2010 that we expect to mitigate these and other challenges includesimplification of our domestic stores movie rental terms andpricing, launch of a significant marketing program to drive storetraffic and by-mail subscriber growth during the peak holidayseason, implementation of additional studio windows, a balancedslate of movie releases, and merchandising improvements includingBlockbuster-exclusive products," explains Mr. McGill. "However,there can be no assurance regarding these matters given increasedcompetition, which has negatively impacted our ability toaccurately forecast our results of operations and cash positionand may result in deterioration of our revenues beyond what weanticipate."

Further deterioration of revenues beyond what is contemplated inthe Company's current plans for the remainder of 2010 wouldnegatively impact its anticipated revenues, profitability and cashflows from operations, he adds. "Our expectations with respect toour performance over the remainder of 2010 are subject to a numberof assumptions, many of which are outside our control, such as therate at which customers are shifting preferences in entertainmentdelivery channels, our ability to reach acceptable terms with thestudios for the provision of film content for each of ourdistribution channels, competitive pressures, the slate and timingof movie releases by major studios, the effectiveness of ourplanned fourth quarter advertising campaign and customerpreference for entertainment during the holiday season, impact ofbankruptcy proceedings and no significant contraction in our tradeterms."

"There can be no assurance that our planned strategic andoperational initiatives for the fourth quarter of 2010 will besuccessful or that the DIP Lenders or the Bankruptcy Court willapprove the Proposed Plan, and under such circumstances we couldbe forced to consider other alternatives to maximize potentialrecovery for our various creditor constituencies, including apossible sale of the company or certain of its material assets,pursuant to section 363 of the Bankruptcy Code.

"Although we continue to face extremely challenging conditions, weremain dedicated to repositioning and transforming Blockbusterinto a multi-channel brand by increasing our points of presencethrough alliances for vending and digital distribution and byoffering our customers the most convenient access to mediaentertainment, while optimizing our store portfolio throughcontinued closures of less profitable stores."

Through its alliance with NCR, the Company expects at least 7,500Blockbuster Express kiosks by the end of 2010. It also plans togrow the by-mail channel and further expand availability of itsdigital offering through BLOCKBUSTER On Demand.

"By leveraging our brand to deliver content through multiplechannels, we believe we have positioned ourselves to be a leadingprovider of convenient access to media entertainment. Through theplanned integration of our stores, by-mail, vending kiosks anddigital services, we intend to utilize a centralized customerdatabase, realize supply chain efficiencies and ultimately delivera superior customer experience. We believe this multi-channelcapability differentiates us from our competitors and will helpposition us to meet the challenges of operating in the rapidlychanging media entertainment industry," Mr. McGill maintained.

About Blockbuster Inc.

Based in Dallas, Texas, Blockbuster Inc. (Pink Sheets: BLOKA,BLOKB) -- http://www.blockbuster.com/-- is a global provider of rental and retail movie and game entertainment. It has a libraryof more than 125,000 movie and game titles. Blockbuster said ithad assets of $1,017,035,832 and debts of $1,464,939,759 as ofAugust 1, 2010.

A steering group of senior secured noteholders is represented byJames P. Seery, Esq., and Paul S. Caruso, Esq., at Sidley AustinLLP. U.S. Bank National Association as trustee and collateralagent for the senior secured notes is represented by DavidMcCarty, Esq., and Kyle Mathews, Esq., at Sheppard Mullin Richter& Hampton LLP. BDO Consulting is the financial advisor for U.S.Bank.

Lenders led by Wilmington Trust FSB are providing the DIPfinancing. The DIP Agent is represented by Peter Neckles, Esq.and Alexandra Margolis, Esq., at Skadden, Arps, Slate, Meagher &Flom LLP, in New York.

The Official Committee of Unsecured Creditors has retained CooleyLLP as its counsel.

Blockbuster's non-U.S. operations and its domestic andinternational franchisees, all of which are legally separateentities, were not included in the filings and are not parties tothe Chapter 11 proceedings.

BLOCKBUSTER INC: Sec. 341 Meeting Continued to Dec. 6-----------------------------------------------------The Office of the United States Trustee for Region 2 has continuedthe first meeting of creditors pursuant to Section 341(a) of theBankruptcy Code of Blockbuster Inc. and its 11 Debtor-affiliatesto December 6, 2010, at 3:30 p.m., Eastern Standard Time, at theOffice of the U.S. Trustee, at 80 Broad Street, 4th Floor, in NewYork.

The first meeting of creditors required under Section 341(a) inthe Debtors' bankruptcy cases was held on November 1, 2010.

Lyme Regis Seeks More Information

Creditor Lyme Regis Partners, LLC, submitted with the UnitedStates Bankruptcy Court for the Southern District of New York itsinterrogatories to the Debtors' designated agent, ThomasKurrikoff, to obtain information as part of the Meeting ofCreditors. Mr. Kurrikoff is Blockbuster's Senior Vice Presidentand Treasurer.

At the Initial Meeting, Lyme Regis' counsel, Debtors' counsel, andthe U.S. Trustee's representative agreed that, in order toconserve resources, Lyme Regis may provide written questions toMr. Kurrikoff, in lieu of extensive oral examination. The methodwill also allow Mr. Kurrikoff to review any relevant documentsneeded to provide complete responses to questions regardingDebtors' schedules in the action.

Hence, the Meeting has been continued to December 6, in part toallow for any further questioning necessary to clarify theinterrogatory responses from the Debtors' agent.

Representing Lyme Regis, Scott A. McMillan, Esq., at The McMillanLaw Firm, APC, in La Mesa, California, contends that Lyme Regishas crafted its interrogatories as clear and straightforward aspossible to avoid objections to and obtain complete and truthfulresponses to issues regarding the Debtors' assets identified intheir schedules of assets and liabilities.

To the extent Debtors' agent does not understand any question, orasserts objections and a refusal to respond, Lyme Regis asks thatthe Debtors' attorneys attempt to resolve the disputes informallybefore the continued Meeting date to conserve all parties'resources. Lyme Regis also asks that the Debtors serve theirwritten responses as soon as possible so that it can review theresponses in advance of the continued Meeting date, but in noevent less than seven calendar days before the second Meeting.

Lyme Regis has cited the specific schedules, pages, docket numbersand line items at issue, and will provide further information tothe Debtors if needed to properly respond to the interrogatories,Mr. McMillan says. He points out that the requested informationis needed to meaningfully conduct a review of any proposed plan ofreorganization in the bankruptcy proceeding, and thus, theDebtors' cooperation and candor is appreciated. Lyme Regisreserves its right to question the Debtors' representative at thecontinued Meeting.

Among other things, Mr. McMillan says, Lyme Regis wants to knowwhy the amounts of secured claims for land and buildings arelisted as "Undetermined," and what efforts were taken by theDebtors to determine the amounts of the secured claims.

About Blockbuster Inc.

Based in Dallas, Texas, Blockbuster Inc. (Pink Sheets: BLOKA,BLOKB) -- http://www.blockbuster.com/-- is a global provider of rental and retail movie and game entertainment. It has a libraryof more than 125,000 movie and game titles. Blockbuster said ithad assets of $1,017,035,832 and debts of $1,464,939,759 as ofAugust 1, 2010.

A steering group of senior secured noteholders is represented byJames P. Seery, Esq., and Paul S. Caruso, Esq., at Sidley AustinLLP. U.S. Bank National Association as trustee and collateralagent for the senior secured notes is represented by DavidMcCarty, Esq., and Kyle Mathews, Esq., at Sheppard Mullin Richter& Hampton LLP. BDO Consulting is the financial advisor for U.S.Bank.

Lenders led by Wilmington Trust FSB are providing the DIPfinancing. The DIP Agent is represented by Peter Neckles, Esq.and Alexandra Margolis, Esq., at Skadden, Arps, Slate, Meagher &Flom LLP, in New York.

The Official Committee of Unsecured Creditors has retained CooleyLLP as its counsel.

Blockbuster's non-U.S. operations and its domestic andinternational franchisees, all of which are legally separateentities, were not included in the filings and are not parties tothe Chapter 11 proceedings.

BOSTON GENERATING: Must Seek FERC OK to Reject Gas Transport Deal-----------------------------------------------------------------Boston Generating, LLC, and its affiliates have moved to reject acontract for the transportation of natural gas to one of theirpower plants, the Fore River Plant, as part of their bid to sellsubstantially all of their assets, including the Plant. AlgonquinGas Transmission, LLC, the counterparty to the 20-year HubLineService Agreement, objects, arguing that the Debtors must assumethe HSA as part of the sale.

In September, Algonquin moved to withdraw the reference to theBankruptcy Court with respect to the HSA Rejection Motion and theSale Motion. As reported by the Troubled Company Reporter, theU.S. District Court for the Southern District of New York onNovember 1 granted the motion to withdraw the reference withrespect to the Rejection Motion because the Rejection Motionrequires substantial consideration of non-bankruptcy federal law,and denied the motion to withdraw the Sale Motion. The SaleMotion remains referred to the bankruptcy court.

By separate order on November 1, both parties were directed toshow cause by November 5 why the District Court should nottransfer the Rejection Motion back to the Bankruptcy Court for itto decide the motion pursuant to 11 U.S.C. Sec. 365, on thecondition that the Debtors must also obtain approval from theFederal Energy Regulatory Commission to reject the HSA.

Debtor-affiliate Fore River supports transferring the RejectionMotion back to the Bankruptcy Court, and supports an orderrequiring it to seek a ruling from the FERC "whether rejection ofthe HSA conflicts with the filed rate doctrine and the publicinterest under the [Natural Gas Act]."

Algonquin agrees that the FERC must make the public interestdetermination that would permit Fore River to reject the HSA. Itargues that any review of the FERC determination must lie with theCourt of Appeals. It agrees that the Rejection Motion can betransferred back to the Bankruptcy Court, but argues that theBankruptcy Court's ruling on the Rejection Motion must await theFERC's determination that Fore River may reject the HSA.

Accordingly, the Hon. Denise Cote refers the Rejection Motion backto the Bankruptcy Court for decision pursuant to the BankruptcyCode. To reject the contract, Judge Cote says the Debtors mustalso obtain a ruling from the FERC that abrogation of the contractdoes not contravene the public interest.

A copy of Judge Cote's Memorandum Opinion and Order, datedNovember 12, 2010, is available at http://is.gd/hhxXsfrom Leagle.com.

New York-based Boston Generating, LLC, owns nearly 3,000 megawattsof mostly modern natural gas-fired power plants in the Bostonarea. Privately held Boston Generating is an indirect subsidiaryof US Power Generating Co., and considers itself as the third-largest fleet of plants in New England.

Boston Generating filed for Chapter 11 protection on August 18,2010 (Bankr. S.D.N.Y. Case No. 10-14419). Boston Generatingestimated its assets and debts at more than $1 billion as of thePetition Date.

CANO PETROLEUM: Discloses Stock Exchange Compliance Notice----------------------------------------------------------Cano Petroleum, Inc. received a notice from the NYSE AMEX Staffindicating that the Company is below certain of the Exchange'scontinued listing standards due to its failure to hold a 2009Annual Meeting of Stockholders as set forth in Section 704 of theCompany Guide. Cano has been afforded the opportunity to submit aplan of compliance to the Exchange by December 10, 2010 thatprovides for the Company to conduct an annual meeting of itsstockholders by May 10, 2011. If the Company does not submit aplan to hold the meeting prior to May 10, 2011 or if the plan isnot accepted by the Exchange, the Company will be subject todelisting procedures as set forth in Section 1010 and part 12 ofthe Company Guide.

About Cano Petroleum

Cano Petroleum, Inc. is an independent Texas-based energy producerwith properties in the mid-continent region of the United States.Led by an experienced management team, Cano's primary focus is onincreasing domestic production from proven fields using enhancedrecovery methods.

CAPITALSOURCE INC: Moody's Affirms 'Ba3' Corporate Family Rating----------------------------------------------------------------Moody's Investors Service affirmed the Ba3 corporate family ratingof CapitalSource Inc., as well as the Ba3 rating of the firm'ssenior secured notes. The outlook for the ratings remainsnegative.

Since 2008, CapitalSource has been exiting non-core operations,primarily through asset sales and loan portfolio runoff, andbuilding the scale and operating capabilities of CapitalSourceBank, its California industrial bank. Between 2008 and September2010, the company's non-bank loan portfolios declined $3.9 billion(57%) while loan balances at CapitalSource Bank grew $1 billion(37%). Assets sold by CapitalSource include its nearly $1 billionportfolio of healthcare net leases. To further itstransformation, CapitalSource has said that during 2011 it willseek Fed approval for bank holding company status and pursue acommercial bank charter for CapitalSource Bank.

Moody's said that loan portfolios remaining at the CapitalSourceparent company are now mostly match funded as to term and loancovenants have been renegotiated. Using proceeds from asset salesand loan collections, CapitalSource repaid $2.7 billion in parentindebtedness during the first three quarters of 2010, reducing itsconsolidated effective leverage to 3.5x at September 30, 2010 from4.4x at the end of 2009. Moody's noted that CapitalSource had$1.2 billion of unfunded loan commitments at the end of the thirdquarter, exceeding unrestricted cash and availability underborrowing sources by $802 million. However, the company is makingprogress shrinking this gap. Asset sales and runoff reduced thepotential funding gap by $542 million in the first three quartersof 2010 and draws on the parent level unfunded lending commitmentshave so far been manageable. Runoff of CapitalSource legacyportfolios should further reduce risks to parent liquidity andcapital positions. Meanwhile, CapitalSource Bank has built solidliquidity and capital positions and is functioning effectively asa platform for funding new loan volumes. CapitalSource Bankincreased its cushion against the FDIC's required 15% total risk-based capital ratio, with its ratio measuring 18.3% at September30, 2010, versus 17.5% at year-end 2009.

"CapitalSource's portfolio runoff and asset sales are naturallydeleveraging, so Moody's anticipate that the company will maintaina strong capital position throughout its transformation; this is akey factor underpinning the ratings," said Wasden.

Contrasting these positive developments, CapitalSource's assetquality performance and profitability continue as significantareas of credit concern. Though credit costs and delinquencyrates have recently shown some signs of improvement, they remainat elevated levels. CapitalSource has acted to reduce riskierexposures, recently deconsolidating its approximately $0.9 billion2006-A securitization, which was concentrated in commercial realestate loans. CapitalSource estimates that its loss reservesshould be sufficient to absorb remaining charge-offs in its run-off portfolios, which would point to potentially lower futureprovision expense and higher earnings. Indeed, CapitalSourceswung to a profit in the second and third quarters of 2010, basedprimarily on lower loss provisions.

However, commercial real estate continues to account for aboutone-third of CapitalSource's loan exposures. Moody's believesthat this sector will be weak for several more quarters, whichcreates uncertainty regarding CapitalSource's reserve adequacy.Also, Moody's expects that broader economic conditions willcontinue to challenge the performance of CapitalSource's cash flowloans to other weakened business sectors. As the company'sunderperforming loans are collected or charged off, its assetquality and earnings volatility should decline, which would bepositive for its credit profile. Conversely, continued assetquality weakness even as economic conditions improve couldnegatively affect the firm's ratings.

CapitalSource's ratings are also constrained by certain franchiseconcerns. CapitalSource Bank's deposit-taking activities aregeographically concentrated (South/Central California) and itsproduct offerings are limited in scope. The bank's deposit mixhas a high proportion of short-term, interest rate-sensitive CD'sand its account relationships are potentially less sticky thanthose of many other banks, in Moody's view. CapitalSource alsofaces continuing execution risks associated with its furtherbusiness and funding transitions and competitive threats posed bylarger, more-established lenders and banks also seeking to improvetheir presence in middle-market lending as the economic recessionfades. Moody's believes CapitalSource Bank has the ability toincrease its deposit levels to fund anticipated loan growth overthe intermediate term, but Moody's considers the bank's longer-term competitive positioning as developing.

The Company reported a net loss of $45.52 million on$48.41 million of interest income in three months ended Sept. 30,2010, compared with a net loss of $128.12 million on $56.32million of interest income in the same period in 2009.

The Company's balance sheet at Sept. 30, 2010, shows$4.23 billion in total assets, $4.16 billion in total liabilities,and equity of $77.68 million.

The Company said that consolidated assets declined 20% year-over-year to $4.2 billion at September 30, 2010 as a result of bankdivestitures and balance-sheet deleveraging strategies. Fromthese efforts, total portfolio loans approximated $3.3 billion atSeptember 30, 2010, an approximate 13% decline over the pasttwelve months inclusive of the effect of recent bank divestitures.Total deposits reflected an approximate 7% year-over-year declineto approximately $3.8 billion from nearly $4.1 billion reported atSeptember 30, 2009.

Affiliate Bank Divestitures and Regional Bank Consolidations

Capitol previously announced plans to sell its controllinginterests in several affiliate banks. In October, Capitolcompleted the sale of its interests in three Colorado-basedaffiliates: Fort Collins Commerce Bank, Larimer Bank of Commerceand Loveland Bank of Commerce. These three transactions consistedof approximately $240 million of assets and resulted in thegeneration of about $15 million of proceeds for reinvestment inbank affiliates. Capitol also announced agreements to sell itsinterests in 1st Commerce Bank in Nevada and Evansville CommerceBank in Indiana. Those transactions, in addition to three otherpending transactions involving affiliates in Arizona and Texas,reflect five divestitures awaiting regulatory approvals andrepresent an additional $445 million of assets and the opportunityto reallocate nearly $40 million of capital to other banks withinthe Capitol Bancorp network. The five pending divestitures areanticipated to be completed later this year or early 2011.

Several regional charter consolidations occurred earlier in 2010and in the fourth quarter of 2009 in Arizona, California, Georgia,Indiana, Michigan, Nevada and Washington, resulting in theelimination of 20 charters. To date, the regional consolidationeffort has resulted in the consolidation of 27 charters into sevengeographically-concentrated banks. Preliminary results at themerged institutions are actively monitored with the expectation ofmeeting targeted efficiency objectives, although implementationcosts and restructuring expenses associated with these mergers maydelay full recognition of projected cost savings and efficiencies.

Capitol Bancorp Limited (NYSE: CBC) --http://www.capitolbancorp.com/-- is a $5.1 billion national community banking company, with a network of bank operations in 16states. Founded in 1988, Capitol Bancorp Limited has executiveoffices in Lansing, Michigan and Phoenix, Arizona.

In September 2009, Capitol and its second-tier bank holdingcompanies entered into a written agreement with the FederalReserve Bank of Chicago under which Capitol has agreed, amongother things, to submit to the Reserve Bank a written plan tomaintain sufficient capital at Capitol on a consolidated basis andat Michigan Commerce Bank (as a separate legal entity on a stand-alone basis); and a written plan to enhance the consolidatedorganization's risk management practices, a strategic plan toimprove the consolidated organization's operating results andoverall condition and a cash flow projection.

Certain of Capitol's bank subsidiaries have entered into formalagreements with their applicable regulatory agencies. Thoseagreements provide for certain restrictions and other guidelinesand/or limitations to be followed by the banks.

In 2009, Capitol commenced the deferral of interest payments onits various trust-preferred securities, as is permitted under theterms of the securities, to conserve cash and capital resources.The payment of interest may be deferred for periods up to fiveyears. During such deferral periods, Capitol is prohibited frompaying dividends on its common stock (subject to certainexceptions) and is further restricted by Capitol's writtenagreement with the Federal Reserve Bank of Chicago. Accruedinterest payable on such securities approximated $18.1 million atJune 30, 2010.

CAPITOL INVESTMENTS: Proofs of Claim Must Be Filed By Jan. 31-------------------------------------------------------------The Honorable Laurel M. Isicoff directs all creditors of CapitolInvestments USA, Inc., Ocean Rock Enterprises, Pink PantherEnterprises, LLC, and JAT Wholesale, Inc., to file their proofs ofclaim with the Bankruptcy Clerk in Miami, Fla., by Jan. 31, 2011,in order to participate in any distribution from the Debtors'estates.

CAPMARK FINANCIAL: Committee Now Wants to Pursue Preference Claims------------------------------------------------------------------Bankruptcy Law360 reports that unsecured creditors in CapmarkFinancial Group Inc.'s bankruptcy appear resigned that fraudulenttransfer claims are now off the table, but they are now seekingapproval to prosecute insider preference claims against securedlender Goldman Sachs Group Inc.

Law360 says the official committee of unsecured creditors filed amotion Friday for reconsideration or clarification of a Nov. 1decision that approved a $975 million settlement between Capmarkand its secured lenders.

Since filing in Chapter 11, Capmark completed three sales togenerate more than $1 billion cash. Berkshire Hathaway Inc. andLeucadia National Corp. bought most of the business for$468 million.

CAPRIUS INC: Signs Agreement for Merger Into Vintage Capital------------------------------------------------------------Caprius Inc. has entered into a definitive merger agreement to beacquired by Vintage Capital Group LLC. Under the terms of theagreement, Caprius' common and preferred stockholders will receive$0.065 per share on an as-converted basis. The price represents apremium of approximately 157% over the trailing 30-day weightedaverage closing price of the Company's common stock.

Caprius' Board of Directors, acting on the recommendation of aSpecial Committee of independent directors, unanimously approvedthe merger agreement and recommends that Caprius' stockholdersadopt the merger agreement at a special stockholders meeting.

Vintage is the Company's senior secured lender. To date, Vintagehas advanced approximately $4.3 million in cash to the Company,exclusive of an additional $1.4 million of capitalized obligationsowed to Vintage. Pursuant to the terms of the merger agreement,Vintage has agreed to exercise its warrant into no more than 40%of the Company's voting stock as of the record date of the specialstockholders meeting.

The merger is subject to approval by the holders of a majority ofthe Company's outstanding common and preferred stock votingtogether as a single class on an as-converted basis. Thetransaction is not subject to a financing contingency and isexpected to close in the second quarter of 2011.

Under the merger agreement, Caprius has the right to solicitcompeting acquisition proposals from third parties during a periodending on December 15, 2010. KPMG Corporate Finance LLC has beenengaged by Caprius' Special Committee in connection with thesolicitation. In addition, Caprius may, at any time, subject tothe terms of the merger agreement, respond to unsolicited superiorproposals. Caprius does not intend to disclose developmentsregarding this process. There is no assurance that this processwill result in a superior proposal.

The Company's balance sheet at June 30, 2010, showed $1.66 millionin total assets, $5.87 million in total liabilities, and a$4.22 million stockholders' deficit.

* * *

Marcum LLP, in New York City, expressed substantial doubt aboutthe Company's ability to continue as a going concern afterauditing the Company's financial results for fiscal 2009. Theindependent auditors noted of the Company's working capitaldeficiency and substantial recurring losses from operations.

CAPRIUS INC: Former CFO No Longer Member of Board-------------------------------------------------On November 5, 2010, Jonathan Joels said he resigned as a directorof Caprius Inc., in connection with his entry into a SeparationAgreement and General Release with the Company.

The Company previously reported Mr. Joels' termination of hisemployment, including termination as the Company's Chief FinancialOfficer, Treasurer, Secretary, effective September 15, 2010.

The Company's balance sheet at June 30, 2010, showed $1.66 millionin total assets, $5.87 million in total liabilities, and a$4.22 million stockholders' deficit.

* * *

Marcum LLP, in New York City, expressed substantial doubt aboutthe Company's ability to continue as a going concern afterauditing the Company's financial results for fiscal 2009. Theindependent auditors noted of the Company's working capitaldeficiency and substantial recurring losses from operations.

CARABEL EXPORT: Court Discharges Monsita Arribas as Ch. 11 Trustee------------------------------------------------------------------As the estates of Carabel Export and Import Inc. and itsdebtor-affiliates have been fully administered, Judge Enrique S.Lamoutte Inclan of the U.S. Bankruptcy Court for the District ofPuerto Rico has issued a final decree discharging Monsita LecarozArribas as trustee of the above named Debtors' estates.

CARRIZO OIL: S&P Assigns Corporate Credit Rating at 'B'-------------------------------------------------------Standard & Poor's Ratings Services assigned its 'B' corporatecredit rating to independent oil and gas exploration andproduction company Carrizo Oil & Gas Inc. The outlook is stable.At the same time, S&P assigned a 'B-' issue-level rating toCarrizo's $400 million senior unsecured notes due 2018. S&P alsoassigned a '5' recovery rating to the notes, indicatingexpectations of a modest (10% to 30%) recovery in the event of apayment default. The company will use proceeds from thetransaction to fund a tender offer for up to $300 million inprincipal amount of its outstanding convertible debt and to repayborrowings under its bank credit facility.

"The ratings on Houston-based Carrizo reflect the company'svulnerable business risk position as an operator in thecompetitive and highly cyclical oil and gas industry; its small,geographically concentrated reserve and production base that isoverwhelmingly weighted toward natural gas; and its high debtleverage," said Standard & Poor's credit analyst Patrick Y. Lee.These factors are partially offset by a long reserve life andstrong organic reserve replacement.

As of Dec. 31, 2009, Carrizo had proved reserves of nearly602 billion cubic feet of natural gas equivalent (85% natural gas;56% proved developed), and a reserve life of 18.2 years on aproved to 2009 production basis and 10.1 years on a proveddeveloped to 2009 production basis. Nearly 97% of production wasnatural gas. The company's reserves were concentrated in theBarnett Shale, which represented approximately 95% of total provedreserves and 80% of production.

The stable outlook is based on Carrizo's well-established positionin the Barnett, good reserve life, and decent prospects in variousplays. S&P considers a downgrade to be possible if, for anextended period of time, leverage was to exceed the 4.5x to 5xarea or if liquidity materially worsens. S&P could upgrade thecompany if it were to significantly diversify in terms ofcommodity and geographic production, if reserves and productioncontinued to grow, and if credit metrics were to trend positively,including leverage under 3.75x on a sustained basis.

The Joint Debtors did not file a list of its largest unsecuredcreditors together with its petition.

CENTAUR LLC: Committee Sues Lender Over Lien Validity-----------------------------------------------------Bill Rochelle, the bankruptcy columnist for Bloomberg News,reports that the official committee of unsecured creditors forCentaur LLC filed a lawsuit on Nov. 15 to resolve disputes overhow much collateral secures the claims of the first- and second-lien lenders.

According to the report, the Creditors Committee contends, amongother things, that the lenders can't claim security interests ingaming licenses or letters of credit posted with regulators. TheCommittee also claims that guarantees of secured debt given bysubsidiaries are fraudulent transfers that may be voided inbankruptcy.

Mr. Rochelle relates that the Committee was up against a deadlinefor filing a complaint, otherwise the lenders' liens would havebecome unassailable. The Committee received authority to sue whenit contended there are defects in the security interests on$192 million in collateral claimed by the first- and second-lienlenders.

Mr. Rochelle notes that although the Committee may sue, itslawyers can be paid only from lawsuit recoveries, if any. Thecompany retained the right to settle disputes over lien validity.

About Centaur LLC

Indianapolis, Indiana-based, Centaur, LLC, aka Centaur Indiana,LLC -- http://www.centaurgaming.net/-- is involved in the development and operation of entertainment venues focused on horseracing and gaming. The Company and its affiliates filed forChapter 11 bankruptcy protection (Bankr. D. Del. Case No. 10-10799) on March 6, 2010. The Company estimated its assets anddebts at $500 million to $1 billion as of the Petition Date.Gerard H. Uzzi, Esq., Michael C. Shepherd, Esq., and Lane E. Begy,Esq., at White & Case LLP, serve as counsel to the Debtors.

CHEM RX: Fox Rothschild's Fee Application Comes Under Fire----------------------------------------------------------Bankruptcy Law360 reports that a $35,000 fee application by FoxRothschild LLP, counsel to unsecured creditors in Chem Rx Corp.'sbankruptcy, has come under attack by lenders' agent CanadianImperial Bank of Commerce, which says the firm broke a financingagreement by using Chem Rx's cash collateral to pay for anadversary proceeding.

About Chem RX Corporation

Long Beach, N.Y.-based Chem RX Corporation, aka ParamountAcquisition Corp. -- http://www.chemrx.net/-- is a major institutional pharmacy serving the New York City metropolitanarea, as well as parts of New Jersey, upstate New York,Pennsylvania and Florida. Chem Rx's client base includes skillednursing facilities and a wide range of other long-term carefacilities. Chem Rx annually provides more than six millionprescriptions to more than 69,000 residents of more than 400institutional facilities.

The Company and five affiliates sought Chapter 11 protection(Bankr. D. Del. Case No. 10-11567) on May 11, 2010. DennisA. Meloro, Esq., and Scott D. Cousins, Esq., at GreenbergTraurig, LLP, represents the Company in its restructuring.

Cypress Holdings, LLC, is the Company's financial advisor. RSRConsulting, LLC, is the Company's chief restructuring officer.Brunswick Group LLP is the Company's public relations consultant.Grant Thornton LLP is the Company's independent auditor. LazardMiddle Market LLC is the Company's investment banker. Eichen &Dimeglio PC is the Company's tax advisor. Kurtzman CarsonConsultants is the Company's claims and notice agent.

The Company disclosed $169,690,868 in assets and $178,281,128 indebts as of February 28, 2010.

CIRTRAN CORP: Delays Filing Form 10-Q for Third Quarter-------------------------------------------------------CirTran Corporation said it could not timely file its quarterlyreport on Form 10-Q with the Securities and Exchange Commissionbecause management requires additional time to compile and verifythe data required to be included in the report.

West Valley City, Utah-based CirTran Corporation (OTC BB: CIRC)http://www.CirTran.com/-- and its subsidiaries provide turnkey manufacturing services using surface mount technology, ball-gridarray assembly, pin-through-hole, and custom injection moldedcabling in the United States and the People's Republic of China.

Cirtran reported net income of $196,563 on $5.00 million of netsales for the three months ended June 30, 2010, compared with netincome of $865,848 on $3.10 million of net sales for same period ayear earlier.

The Company's balance sheet at June 30, 2010, showed$16.26 million in total assets, $22.95 million in totalliabilities, and a $6.69 million stockholders' deficit.

CMS ENERGY: Fitch Assigns 'BB+' Rating to $250 Mil. Notes---------------------------------------------------------Fitch Ratings has assigned a rating of 'BB+' to CMS Energy Corp.'s$250 million issuance of 5.05% senior unsecured notes, dueFeb. 15, 2018. Proceeds from the sale will be used to finance theretirement of $131.73 million 3.375% convertible senior notes due2023, series B, and $100 million 6.3% senior notes due 2012, andfor general corporate purposes. The new notes rank equally inright of payment with existing senior unsecured obligations ofCMS. The Rating Outlook for the company is Stable.

Key drivers of CMS' rating include: ownership of a regulatedelectric and gas utility, Consumers Energy Co. (Issuer DefaultRating 'BBB-' with a Stable Outlook), a solid liquidity position,and a relatively constructive regulatory environment in Michigan.CMS is highly dependent on Consumers' cash distributions to paycommon dividends and service still substantial parent debtobligations. Primary rating concerns facing CMS and Consumersrelate to the execution of the large capital spending plan andrecovery lag associated with sales weakness due to the stillstruggling Michigan economy, a gas rate case, and legislativerisks associated with a competitive market structure. CMS hastargeted $6.4 billion of capital spending between 2011-2014,including maintenance capex and environmental upgrades, renewableinvestments to comply with the 10% state standard by 2015, smartgrid infrastructure, and its new balanced energy initiative.Fitch notes that Consumers' exposure to the economy is mitigatedto some extent by a pilot decoupling mechanism. Managementforecasts a 1.5% electric sales increase for 2010 and there willbe a two-year decoupling cost recovery lag.

On Nov. 4, 2010, the Michigan Public Service Commission (MPSC)authorized Consumers to raise electric rates by $145.75 million(or, by 4.4%); and, authorized a rate of return on equity (ROE)of 10.7%. Under Michigan legislation, Consumers may self-implement rates within six months and a final order from theMPSC is due within one year of the filing. In January 2010,Consumers had filed a $178 million electric rate request,based on an 11% ROE, and self-implemented a rate increase of$150 million in July 2010. The Nov. 4, 2010 order requiredthat Consumers refund $4.25 million (the difference betweentotal revenues collected by application of the self-implementedrates, and the revenues authorized in the final rate order).While the rate order extends the pilot revenue decouplingmechanism from Dec. 1, 2010 through November 30, 2011, which inFitch's opinion eliminates exposure to any decreases in salesvolumes; it also terminated rate adjustment mechanisms that hadpreviously been included for the purpose of tracking uncollectiblecosts.

On Aug. 13, 2010, Consumers Energy filed an application with theMPSC seeking a $55 million increase in its gas delivery andtransportation rates, premised on an 11% return on equity (ROE).The company's last gas rate increase was in May 2010, when theMPSC authorized a $66 million rate increase based on a 10.55%authorized return. This amount was $23 million less than what thecompany had self-implemented in November 2009, resulting in aregulatory liability of $15 million as a refund due to customers.The May 2010 order also adopts a revenue decoupling mechanism,effective June 1, 2010, which, subject to certain conditions,allows Consumers to adjust future rates to collect or refund thechange in marginal revenue by class arising from the differencebetween base sales per customer established in the order andweather-adjusted sales per customer. The order denied Consumers'request to implement a gas uncollectible expense trackingmechanism and Pension Plan and other post-employment benefitequalization mechanisms.

Consolidated liquidity is sufficient to meet funding requirements.Consolidated liquidity was $1.4 billion, including $747 millionof availability under credit facilities, and $696 million inunrestricted cash and cash equivalents as of Sept. 30, 2010.Near-term bank line maturities include Consumers' $150 millionrevolving credit facility expiring in August 2013; Consumers'$30 million revolving letter of credit facility, expiring inSeptember 2011; and Consumers' $250 million account receivableprogram expiring in February 2011. Fitch expects these facilitiesto be renewed. The core $550 million CMS and $500 millionConsumers bank facilities mature in April and March 2012,respectively.

COLT DEFENSE: S&P Downgrades Corporate Credit Rating to 'B'-----------------------------------------------------------Standard & Poor's Rating Services said that it has lowered itscorporate credit rating on Colt Defense LLC to 'B' from 'B+'. Atthe same time, S&P lowered the issue-level rating on the company'sunsecured notes to 'B' from 'B+', although the '4' recovery ratingremains unchanged. S&P has placed both the corporate credit andissue ratings on CreditWatch Negative.

"West Hartford, Conn.-based Colt, a manufacturer of small arms forthe military and law enforcement, has been experiencing lowerrevenues and earnings over the past year due to decreased demandfor its M4 carbine from its main customer, the U.S. military, aswell as law enforcement customers, ," said Standard & Poor'scredit analyst Christopher DeNicolo. "The company had planned toreplace this demand with orders from international customers andnew products, but has had only limited success, since a largeorder it had expected this year has been delayed. The lowervolumes have also resulted in deteriorating margins, mitigatedsomewhat by cost-reduction efforts."

The reduced earnings and higher debt levels following arefinancing in 2009, have resulted in total debt to EBITDAincreasing to almost 7x for the 12 months ended Oct. 3, 2010, from3x in the same period in 2009, and funds from operations to debtof around 0%, down from 16%. Although S&P expects some modestimprovement in revenues and earnings in fourth-quarter 2010,Colt's results will likely be much lower than the same period in2009 -- which S&P believes will probably result in furtherdeterioration in its credit protection measures.

"S&P expects to meet with management in the near future to get anupdate on the outlook for 2011. S&P could lower the ratingsfurther if it seems unlikely that Colt's credit protectionmeasures will improve over the next year," Mr. DeNicolo added.

COMMUNICATION INTELLIGENCE: Posts $1.09-Mil. 3rd Qtr. Net Loss--------------------------------------------------------------Communication Intelligence Corporation filed its quarterly reporton Form 10-Q, reporting a net loss of $1.09 million on $164,000 oftotal revenue for the three months ended Sept. 30, 2010, comparedwith a net loss of $2.56 million on $877,000 of total revenue forthe same period a year ago.

The Company's balance sheet at Sept. 30, 2010, showed$4.93 million in total assets, $4.66 million in total liabilities,and stockholders' equity of $276,000.

Headquartered in Redwood Shores, California, CommunicationIntelligence Corporation and its joint venture is a supplier ofelectronic signature solutions for business process automation inthe financial industry as well as the recognized leader inbiometric signature verification.

GHP Horwath, P.C. in Denver, Colorado, the Company's auditor, hasexpressed substantial doubt about its ability to continue as agoing concern. The Company noted, in its Form 10-K for the yearended Dec. 31, 2010, of its recurring losses and limitedliquidity.

CONSTELLATION BRANDS: Fitch Gives Stable Outlook in 2011-------------------------------------------------------According to a special report released by Fitch Ratings, the 2011U.S. Beverage credit outlook is stable.

In the non-alcoholic space, credit measures are expected to remainsimilar year over year. While operating income is expected togrow, debt-funded shareholder-friendly activities are anticipated.For Fitch-rated companies in the alcoholic beverage space, creditprotection measures are expected to improve as cash and free cashflow are prioritized for debt reduction and operating income isanticipated to grow.

In alcoholic beverages, volume growth in the low single digits isforecast to continue for spirits and wine. The beer category isexpected to continue to face headwinds for premium domestic beersdue to employment dynamics adversely affecting blue-collarworkers. An expected rebound in casual dining presages an on-premise alcohol sales rebound.

The volume picture for non-alcoholic beverages in the U.S. is alittle cloudier. After a relatively benign 18 months of commodityvolatility, commodity costs are moving higher across the board.Given the current commodity cost projections, Fitch does notexpect the companies will have to take substantial pricing.Assuming pricing is in the low single-digit range, Fitch expectsnon-alcoholic beverage volume in the U.S. to grow between 1% and2%. Outside the U.S., volume growth is expected to continue athigher rates and cost pressures are more moderate. Therefore, theoperating income of The Coca-Cola Company and PepsiCo, Inc. isexpected to grow, given their extensive international operations.However, both are expected to engage in debt-funded sharerepurchases. Fitch expects share repurchases to be executed in amanner so as to maintain current credit measures, but PepsiCo'sshare repurchase authorization leaves the company without any roomin its ratings if operating income growth is subpar.

If commodity costs such as aluminum, corn, polyethyleneterephthalate resin, and diesel fuel rise to a point where marginsare pressured and the non-alcoholic beverage companies need totake pricing, they are likely to experience sharp volume declinesas retailers and consumers push back. The effect of these costincreases is likely to be obscured by bottler acquisitions sinceboth PepsiCo and Coca-Cola are expected to reap synergy gains frombottler consolidation. However, operating income growth will beslower than expected, limiting the companies' ability to makedebt-funded share repurchases and maintain current creditmeasures.

'With PepsiCo historically being more aggressive with sharerepurchases, Fitch questions their willingness to pullback ontheir buybacks if operating income growth is slower thanforecast,' said Christopher Collins, Associate Director at Fitch.'If leverage increases as a result, it would put pressure on thecompany's ratings.'

The outlook assumes a benign acquisition environment, with thealcoholic beverage companies prioritizing organic growth and debtreduction, and non-alcoholic beverage companies expected to bemaking bolt-on foreign acquisitions requiring limited debtfunding. However, all Fitch-rated companies in the beverage spacehave made large acquisitions in the recent past, and a shift to amore acquisitive strategy by an issuer could put pressure oncurrent ratings.

This is a list of Fitch-rated issuers and their current IssuerDefault Ratings:

CONVERSION SERVICES: Signs Contract with VP and CFO W. Henry------------------------------------------------------------On November 11, 2010, Conversion Services International Inc.entered into an employment agreement with William Hendry, theCompany's Vice President and Chief Financial Officer.

The Agreement is effective as of October 16, 2010, and has a termof two years. Either the Company or Mr. Hendry may terminate theAgreement provided that the terminating party provides 30-daywritten notice. Under the terms the Agreement, Mr. Hendry willreceive a base salary of $225,000 per year and an annual bonus, tobe determined by the Company's Board of Directors. Mr. Hendrywill also be entitled to participate in any bonus plan, incentivecompensation program or incentive stock option plan or otheremployee benefits of the Company and which are available to thefive highest paid executives of the Company, on the same terms andat the same level of participation as the five highest paidexecutives of the Company.

About Conversion Services

East Hanover, N.J.-based Conversion Services International, Inc.,provides professional services to the Global 2000, as well as mid-market clientele relating to strategic consulting, businessintelligence/data warehousing and data management and, throughstrategic partners, the sale of software. The Company's servicesbased clients are primarily in the financial services,pharmaceutical, healthcare and telecommunications industries,although it has clients in other industries as well. TheCompany's clients are primarily located in the northeastern UnitedStates.

As reported in the Troubled Company Reporter on March 30, 2010,Frieman LLP, in East Hanover, N.J., expressed substantial doubtabout the Company's ability to continue as a going concern,following its 2009 results. The independent auditors noted thatthe Company has incurred recurring operating losses, negative cashflows, is not in compliance with a covenant associated with itsLine of Credit and has significant future cash flow commitments.

The Company's balance sheet at Sept. 30, 2010, showed$2.66 million in total assets, $5.88 million in total liabilities,and a stockholder's deficit of $3.22 million.

CORD BLOOD: Delays Filing of Form 10-Q for Third Quarter--------------------------------------------------------Cord Blood America Inc. said it could not timely file itsquarterly report on Form 10-Q for the period ended Sept. 30,2010, with the Securities and Exchange Commission because thecompilation, dissemination and review of the information requiredto be presented in the Form 10-Q for the relevant period hasimposed time constraints.

About Cord Blood America

Based in Las Vegas, Nevada, Cord Blood America, Inc., is primarilya holding company whose subsidiaries include Cord Partners, Inc.,CorCell Co. Inc., CorCell Ltd.; CBA Professional Services, Inc.D/B/A BodyCells, Inc.; CBA Properties, Inc.; and Career ChannelInc, D/B/A Rainmakers International. Cord specializes inproviding private cord blood stem cell preservation services tofamilies. BodyCells is a developmental stage company and intendsto be in the business of collecting, processing and preservingperipheral blood and adipose tissue stem cells allowingindividuals to privately preserve their stem cells for potentialfuture use in stem cell therapy. Properties was formed to holdthe corporate trademarks and other intellectual property of CBAI.Rain specializes in creating direct response television and radioadvertising campaigns, including media placement and commercialproduction.

In its March 30, 2010 report, Rose, Snyder & Jacobs, in Encino,California, said the Company's recurring operating losses,continued cash burn, and insufficient working capital andaccumulated deficit at December 31, 2009, raise substantial doubtabout the Company's ability to continue as a going concern.

The Company's balance sheet at June 30, 2010, showed $5.17 millionin total assets, $6.54 million in total liabilities, and a$1.37 million stockholders' deficit.

CREDIT-BASED ASSET: Asks Court to Fix Jan. 11 as Claims Bar Date----------------------------------------------------------------Credit-Based Asset Servicing And Securitization LLC, et al., askthe U.S. Bankruptcy Court for the Southern District of New Yorkto establish January 11, 2011, at 5:00 p.m. (prevailing EasternTime) as the deadline for all persons and entities holding orwishing to assert a prepetition unsecured or secured, priority ornonpriority claim against the Debtor.

The Debtors also ask the Court to establish May 11, 2011, at5:00 p.m. (prevailing Eastern Time), as the deadline forgovernmental units to file a proof of claim against the Debtor.

United States Bankruptcy Court for the Southern District of New York Re: Credit-Based Asset Servicing and Securitization LLC, et al. One Bowling Green, Room 534 New York, New York 10004-1408

About C-Bass

Credit-Based Asset Servicing & Securitization LLC is a subprimemortgage investor based in New York. C-Bass is a joint venture,owned in part by units of mortgage insurers MGIC Investment Corp.and Radian Group Inc.

C-Bass and its units filed for Chapter 11 bankruptcy protection onNovember 12, 2010 (Bankr. S.D.N.Y. Lead Case No. 10-16040). C-BASS estimated its assets at $10 million to $50 million and debtsat more than $1 billion.

CREDIT-BASED ASSET: Wants to Reject Litton Loan Servicing Pact--------------------------------------------------------------Credit-Based Asset Servicing And Securitization LLC, et al., seekauthorization from the U.S. Bankruptcy Court for the SouthernDistrict of New York to reject their December 10, 2007 ServicingAgreement with Litton Loan Servicing LP, nunc pro tunc toNovember 12, 2010.

The Debtors owned and managed a multi-billion dollar portfolio of(i) performing, subperforming, and nonperforming residential wholeloans, small balance commercial whole loans, and real estate ownedproperty, and (ii) subordinated classes of residential mortgage-backed securities collateralized by or evidencing interests inpools of residential mortgage loans and real estate ownedproperty. In the months prior to the Petition Date, substantiallyall of the Serviceable Assets have been sold or foreclosed upon bythe applicable secured creditor. The Debtors said that theremaining Serviceable Assets are relatively immaterial,undesirable in many respects, and will be sold, abandoned ordistributed to the applicable secured creditor under the Debtors'proposed Chapter 11 plan.

The Servicing Agreement was designed and intended to provide loanservicing for the Whole Loan Assets and special servicing withrespect to the residential mortgage loans and real estate ownedproperty collateralizing or otherwise backing the RMBS. AlthoughC-BASS is not obligated to Litton under the Servicing Agreementfor servicing fees with respect to Whole Loan Assets no longerowned by C-BASS, C-BASS does remain obligated to Litton under theServicing Agreement for special servicing and other fees withrespect to loans collateralizing or backing the RMBS even thoughC-BASS no longer owns or benefits from the RMBS. According to heDebtors, the value (if any) of the Serviceable Assets remaining inC-BASS's possession and control is not sufficient economically tojustify the continued payment of the related fees to Litton underthe Servicing Agreement.

The Debtors said, "An integral component of C-BASS's efforts tomaximize value for its estate and its stakeholders consists ofeliminating unnecessary operating costs and burdensome contracts.C-BASS has determined, in an exercise of its sound businessjudgment, that it is in the best interests of its estate and itsstakeholders to avoid the accrual of any further obligations underthe Servicing Agreement. C-BASS has reviewed the ServicingAgreement and determined that it holds no material economic valueas to C-BASS or its estate. Indeed, there would be nocorresponding economic benefit to C-BASS and its estate if C-BASScontinued to pay Litton for future monthly special servicing feesand real estate owned liquidation fees payable with respect toloans that collateralize or back RMBS that are no longer owned byC-BASS. Moreover, special servicing services pursuant to theterms of the Servicing Agreement are no longer economicallyjustifiable in light of the immaterial and undesirable nature ofthe remaining Serviceable Assets owned by the Debtors."

About C-Bass

Credit-Based Asset Servicing & Securitization LLC is a subprimemortgage investor based in New York. C-Bass is a joint venture,owned in part by units of mortgage insurers MGIC Investment Corp.and Radian Group Inc.

C-Bass and its units filed for Chapter 11 bankruptcy protection onNovember 12, 2010 (Bankr. S.D.N.Y. Lead Case No. 10-16040). C-BASS estimated its assets at $10 million to $50 million and debtsat more than $1 billion.

CREDIT-BASED ASSET: Wants to Abandon Trust Securities-----------------------------------------------------Credit-Based Asset Servicing And Securitization LLC, et al., askfor authorization from the U.S. Bankruptcy Court for the SouthernDistrict of New York to abandon its trust securities to theapplicable owner trustees.

CBO Holding was formed to invest in collateralized debt obligationbonds and equity securities, other mortgage-related securities andmortgage loans.

CBO Holding issued common limited liability company membershipinterests and Class A preferred membership interests. The DebtorCredit-Based Asset Servicing and Securitization LLC holds 100% ofthe Common Membership Interests. Approximately 125 parties, noneof which is affiliated with C-BASS hold 100% of the Class AMembership Interests.

The sole assets currently owned by CBO Holding are certainmortgage-backed owner trust certificates and one mortgage-backedsubordinated bond purchased from third party mortgage investmenttrusts. The Trust Securities are among the remaining collateralsubject to a lien under the Debtors' principal secured debt, whichconsisted of a $1.855 billion senior secured credit facility.

The Owner Trust Certificates represent the right to receivecertain residual cash flows from the Trusts, which hold specifiedpools of residential mortgage loans. As a result of holding theOwner Trust Certificates, CBO Holding is required to file federaland state tax returns that treat the income and expenses of theTrusts as its own. The Subordinated Bond is aggregated with theOwner Trust Certificates for tax purposes. If the Owner TrustCertificates were to be abandoned and the Subordinated Bondretained, CBO Holding would still be required to file federal andstate tax returns for income from the Subordinated Bond.

According to the Debtors, the Owner Trust Certificates representthe first loss interests in the Trusts, meaning that losses on themortgage-related assets owned by the Trusts are allocated to andhence erode the value of the Owner Trust Certificates before anysuch losses are allocated to and thus erode the value of varioustranches of promissory notes issued by the Trusts. "Essentially,the Owner Trust Certificates constitute equity in the Trusts, andthe Notes constitute debt. Similarly, losses on the mortgage-related assets owned by the Trusts are allocated to and henceerode the value of the Subordinated Bond before any such lossesare allocated to and thus erode the value of the more seniorNotes," the Debtors stated.

The mortgage crisis in the United States over the past few yearsprecipitated a rapid decline in the value of mortgage-relatedassets owned by the Trusts, causing the Trust Securities to loseall value. CBO Holding's ownership of the Trust Securitiescontinues to obligate CBO Holding under applicable law to filefederal and state tax returns, which may include filing state taxreturns in all 50 states. "If CBO Holding continues to hold theTrust Securities beyond December 31, 2010, CBO Holding will berequired to file another year's worth of such tax returns,diminishing whatever funds otherwise would be available fordistribution to unsecured creditors under the Debtors' JointChapter 11 Plan filed concurrently herewith. Accordingly, theDebtors seek authority for CBO Holding to abandon the TrustSecurities to the respective owner trustees of the Trusts," theDebtors said.

According to the Debtors, the Trust Securities have no value tothe Debtors' estates or any third party because any proceedsrealized from the respective Trusts are insufficient to allowdistributions to holders of the Trust Securities.

Abandonment of the Trust Securities by year-end will relieve CBOHolding from the substantial burden of having to file federal andup to 50 state tax returns for the 2011 tax year and beyond.The senior lenders have consented to the abandonment of the TrustSecurities subject to compliance with the RFA.

About C-Bass

Credit-Based Asset Servicing & Securitization LLC is a subprimemortgage investor based in New York. C-Bass is a joint venture,owned in part by units of mortgage insurers MGIC Investment Corp.and Radian Group Inc.

C-Bass and its units filed for Chapter 11 bankruptcy protection onNovember 12, 2010 (Bankr. S.D.N.Y. Lead Case No. 10-16040). C-BASS estimated its assets at $10 million to $50 million and debtsat more than $1 billion.

CREDIT-BASED ASSET: Judge Denies Interim Access to Cash Collateral------------------------------------------------------------------Bill Rochelle, the bankruptcy columnist for Bloomberg News,reports that U.S. Bankruptcy Judge Allan Gropper refused toapprove the temporary use of the lenders' cash collateral on theterms proposed by Credit-Based Asset Servicing & SecuritizationLLC. Judge Gropper said that C-Bass hadn't shown an emergencyneed for cash. He also said an agreement with the lendersshouldn't be approved without first being analyzed by a yet-to-be-formed creditors' committee.

Mr. Rochelle relates that an agreement C-Bass negotiated withsenior secured creditors would create an $8.2 million pot that thecompany can use to operate the Chapter 11 case and distribute tolower ranking creditors under a reorganization plan. To receive adistribution, creditors must agree not to sue the lenders orexecutives of the company, according to the agreement. If seniorlenders are fully paid within three years, half the excess overthe principal amount of the lenders' secured debt would go toC-Bass for distribution to lower-ranking creditors. The agreementrequires New York-based C-Bass to file a Chapter 11 plan andsecure approval of the explanatory disclosure statement byDec. 31. The court must hold a confirmation hearing for approvalof the plan by Feb. 15.

About C-Bass

Credit-Based Asset Servicing & Securitization LLC is a subprimemortgage investor based in New York. C-Bass is a joint venture,owned in part by units of mortgage insurers MGIC Investment Corp.and Radian Group Inc.

C-Bass and its units filed for Chapter 11 bankruptcy protection onNovember 12, 2010 (Bankr. S.D.N.Y. Lead Case No. 10-16040). C-BASS estimated its assets at $10 million to $50 million and debtsat more than $1 billion.

Credit profiles improved meaningfully in 2010, free cash flow ispositive, liquidity is adequate and for most issuers debtreduction remains a focus. Fitch is concerned about operatingearnings declines in dairy and produce but is cautiouslyoptimistic that the protein industry can manage through a morechallenging cost environment. Moderate pricing is anticipated forcommodity food companies but volume growth will vary acrosscategories.

'Credit upside exists for the industry in 2011, given that theRating Outlooks for Del Monte, Tyson and Smithfield are allPositive,' said Carla Norfleet Taylor, Director at Fitch. 'DelMonte and Tyson are investment grade candidates, and Smithfieldcould be upgraded within the 'B' category if hog production staysprofitable and deleveraging continues. The Rating Outlook forDean Foods, however, could be revised to Negative if the currenttrajectory of operating earnings declines continues.'

Fitch views supply levels as the primary factor for commodity foodpricing in 2011, due to limited brand strength for the industry,value-seeking consumers, and retailer pushback within certain foodcategories. Higher than expected corn, fuel and fluid raw milkcosts or weaker than expected pricing due to increased supply orweak global demand would be negative for the industry.

High feed costs should curb protein production while exports areexpected to grow despite reduced demand from Russia. Volatilityaround European banana supply and pricing, which historicallyoccurs around changes in tariffs, remains a risk for global freshproduce firms but 2011 should be a better year for prices.Private label penetration and negative mix shift have reducedmargins for milk processors and Fitch expects excess capacity andcompetition to limit price increases.

Modest pricing, operating efficiencies, and effective hedgingshould partially mitigate margin compression for commodity foodcompanies. However, significant reductions in operating cashflow, negative FCF, and concerns about liquidity along withviolations of financial covenants could result in Outlookrevisions and or downgrades.

The full report '2011 Outlook: Commodity Food; Credit UpsideExists but Inflationary Cost Pressures and Pricing Concerns Rise'is available on the Fitch Ratings web site 'www.fitchratings.com.'

DEAN FOODS: Moody's Assigns 'Ba3' Corporate Family Rating---------------------------------------------------------Moody's affirmed Dean Foods Ba3 CFR and other ratings, changed theoutlook for Dean and its subsidiaries to negative from stable andlowered the speculative grade liquidity rating to SGL-3 from SGL-2. The outlook change reflects the pressure on profitability thatthe company has continued to experience amid price and mixpressures in its Fresh Dairy Direct business, which is drivingcredit metrics into weaker ranges than previously expected. Thechange in the SGL reflects that while internal and externalliquidity remain sound, the company will be much tighter thanexpected against its bank loan covenants when they become morerestrictive next year, which Moody's believe may lead to the needto seek covenant relief for the leverage covenant.

Dean has experienced profit pressures due in part to retailersusing private label milk as a traffic driver. This activity hasbeen funded partially by the retailers themselves, but also inpart by concessions by Dean. This price strategy has also widenedthe price gap between private label milk and Dean's moreprofitable branded milk offering, adding negative mix shift issueto the profit pressure already being caused by the priceconcessions. Further exacerbating the negative price and mixtrends, has been a volume decline in milk consumption (with flatvolumes for Dean) and a spike in the price of butterfat which isused in some of Dean's dairy products. As a result othisconfluence of negative developments, Dean now expects that itsbank-defined leverage will slightly exceed 5 times by calendaryear end, which puts it between 5.5 and 6.0 times using Moody'sstandard adjustments. While this would still be well below theleverage of close to 6.5 times reached in 2007, it is neverthelesstrending high for the rating category. Should leverage besustained above 5.5 times (using Moody's adjustments) in 2011 andif business conditions remain unfavorable for milk processors, therating could be lowered, said Linda Montag, Moody's Senior VicePresident.

Dean's liquidity rating was lowered to SGL-3 from SGL-2. Thisreflects the fact that the cushion above the leverage covenantrequired by the credit agreement will be thin, with bank-definedleverage of over 5 times likely by December (when the covenant isset at 5.5 times) and especially given that the covenant stepsdown to 5 times in June 2011.

Dean's Ba3 rating is supported by the company's leading marketshare and national scale in the US Dairy industry, the potentialfor further cost efficiencies/productivity improvements asmanagement focuses on internal integration, streamlining ofoperations and further cost reduction initiatives, as well as itsstrong distribution network with comprehensive refrigerated directstore delivery systems. These positives are offset by very narrowmargins inherent in its largest, commodity-oriented milk business,more limited product/geographic/customer diversification thancertain other large global food and agriculture firms, and thepotential for both volatility in milk prices, as well as shifts inthe pricing strategies of retailers creating increased pricecompetition among processors to erode profitability.

The last rating action was on July 9, 2010, when Moody's assignedratings to the new bank facilities.

Dean Foods, based in Dallas, TX, is the largest processor anddistributor of milk and various other dairy products in the UnitedStates, and the largest producer of soy milk in Europe through itsAlpro division, with consolidated net sales of approximately$11.2 billion in 2009, of which dairy operations accounted foraround 76%.

Credit profiles improved meaningfully in 2010, free cash flow ispositive, liquidity is adequate and for most issuers debtreduction remains a focus. Fitch is concerned about operatingearnings declines in dairy and produce but is cautiouslyoptimistic that the protein industry can manage through a morechallenging cost environment. Moderate pricing is anticipated forcommodity food companies but volume growth will vary acrosscategories.

'Credit upside exists for the industry in 2011, given that theRating Outlooks for Del Monte, Tyson and Smithfield are allPositive,' said Carla Norfleet Taylor, Director at Fitch. 'DelMonte and Tyson are investment grade candidates, and Smithfieldcould be upgraded within the 'B' category if hog production staysprofitable and deleveraging continues. The Rating Outlook forDean Foods, however, could be revised to Negative if the currenttrajectory of operating earnings declines continues.'

Fitch views supply levels as the primary factor for commodity foodpricing in 2011, due to limited brand strength for the industry,value-seeking consumers, and retailer pushback within certain foodcategories. Higher than expected corn, fuel and fluid raw milkcosts or weaker than expected pricing due to increased supply orweak global demand would be negative for the industry.

High feed costs should curb protein production while exports areexpected to grow despite reduced demand from Russia. Volatilityaround European banana supply and pricing, which historicallyoccurs around changes in tariffs, remains a risk for global freshproduce firms but 2011 should be a better year for prices.Private label penetration and negative mix shift have reducedmargins for milk processors and Fitch expects excess capacity andcompetition to limit price increases.

Modest pricing, operating efficiencies, and effective hedgingshould partially mitigate margin compression for commodity foodcompanies. However, significant reductions in operating cashflow, negative FCF, and concerns about liquidity along withviolations of financial covenants could result in Outlookrevisions and or downgrades.

The full report '2011 Outlook: Commodity Food; Credit UpsideExists but Inflationary Cost Pressures and Pricing Concerns Rise'is available on the Fitch Ratings web site 'www.fitchratings.com.'

DIAMOND RANCH: Delays Filing of Form 10-Q for Third Quarter-----------------------------------------------------------Diamond Ranch Foods Ltd. said it could not timely file itsquarterly report on Form 10-Q with the Securities and ExchangeCommission because of the delay in obtaining and compilinginformation required to be included in the report.

About Diamond Ranch

Diamond Ranch Foods, Ltd. -- http://www.diamondranchfoods.com/-- is a meat processing and distribution company now located in theHunts Point Coop Market, Bronx, New York. The Company'soperations consist of packing, processing, labeling, anddistributing products to a customer base, including, but notlimited to; in-home food service businesses, retailers, hotels,restaurants, and institutions, deli and catering operators, andindustry suppliers.

Gruber & Company LLC, in Lake Saint Louis, Missouri, expressedsubstantial doubt about Diamond Ranch Foods Ltd.'s ability tocontinue as a going concern, noting that the Company has sufferedrecurring losses from operations after the firm audited theCompany's balance sheet as of March 31, 2010, and 2009.

As of June 30, 2010, the Company had $1,408,828 in total assets,$6,274,635 in total liabilities and a $4,793,807 stockholder'sdeficit.

DIETRICH'S SPECIALTY: Highlife Dismissal Plea Deferred Amid Talks-----------------------------------------------------------------Richard E. Fehling, U.S. Bankruptcy Judge for the Eastern Districtof Pennsylvania has set aside the hearing on Highlife Properties,LLC, and Nature's One Inc.'s motion for the dismissal orconversion of Dietrich's Specialty Processing, LLC's Chapter 11case to one under Chapter 7 or, in the alternative, theappointment of a Chapter 11 trustee, in view of the parties'agreement and stipulation "to continue the process of negotiationand working towards settlement." As agreed, the parties will filea stipulation resolving the motion on or before November 22, 2010.

If the parties are unable to reach a settlement, Highlife andNature's One may file a notice to relist the motion, in which caseDebtor's response to the motion will be filed seven days beforeany newly scheduled hearing. Either party will have anopportunity to file a reply to the Debtor's response no later thanthree days before any newly scheduled hearing.

DISABILITY ACCESS: Posts $21,100 Net Loss in September 30 Quarter-----------------------------------------------------------------Disability Access Corporation filed its quarterly report on Form10-Q, reporting a net loss of $21,067 on $388,749 of revenue forthe three months ended September 30, 2010, compared with netincome of $81,836 on $441,306 of revenue for the same period lastyear.

The Company's balance sheet at September 30, 2010, showed$1.7 million in total assets, $1.0 million in total liabilities,and stockholders' equity of $699,659.

As reported in the Troubled Company Reporter on July 7, 2010,Lynda R. Keeton CPA, LLC, in Henderson, Nev., expressedsubstantial doubt about the Company's ability to continue as agoing concern, following the Company's 2009. The independentauditors noted that the Company has working capital deficienciesand continued net losses.

North Las Vegas, Nev.-based Disability Access Corporation-- http://www.adaconsultants.com/-- presently has one subsidiary company, Disability Access Consultants, Inc. Disability AccessConsultants offers a full range of accessibility complianceservices for assistance in compliance with the requirements ofmandated and recommended services for individuals withdisabilities in accordance with federal, state and local laws andregulations.

DJSP ENTERPRISES: Cuts Staff After Fannie, Freddie Exit-------------------------------------------------------DJSP Enterprises, Inc., on November 5 said it has institutedfurther staff reductions as a result of announcements by FannieMae and Freddie Mac that they had terminated their relationshipswith DJSP's primary client, The Law offices of David J. Stern P.A.DJSP has reduced its staffing levels by an additional 416employees bringing the total number of layoffs to more than 700since the reduction in staff was initiated.

About DJSP Enterprises

Based in Plantation, Florida, DJSP Enterprises, Inc. (Nasdaq:DJSP, DJSPW, DJSPU) provides a wide range of processing servicesin connection with mortgages, mortgage defaults, title searchesand abstracts, REO (bank-owned) properties, loan modifications,title insurance, loss mitigation, bankruptcy, related litigationand other services. Its principal customer is The Law Offices ofDavid J. Stern, P.A. It has additional operations in Louisville,Kentucky and San Juan, Puerto Rico. Its U.S. operations aresupported by a scalable, low-cost back office operation in Manila,the Philippines, that provides data entry and document preparationsupport for its U.S. operations.

David Stern's firm and three other large firms are beinginvestigated by Florida Attorney General Bill McCollum forsubmitting false or misleading statements in foreclosureproceedings.

DJSP ENTERPRISES: DAL Unit Has Forbearance From BofA----------------------------------------------------DAL Group LLC, a subsidiary of DJSP Enterprises, Inc., enteredinto a forbearance agreement with Bank of America, N.A., onNovember 12, 2010, pursuant to which the Bank has agreed to nottake any action in connection with the default on a revolving lineof credit for a period ending November 26, 2010, while DALdevelops and presents to the Bank ongoing operating plans for DALand its subsidiaries. The Company has engaged Gulf AtlanticCapital Corporation to assist management in the development ofthese ongoing operating plans.

On March 18, 2010, DAL entered into the Line of Credit with theBank. The Line of Credit has an initial term of one year withinterest only payments due monthly until the expiration of theinitial term, at which time all outstanding principal and interestbalances are due. The outstanding principal balance of the Lineof Credit is approximately $12,000,000.

DAL granted the Bank a lien on all of its assets, and its fouroperating subsidiaries have executed security agreements andguarantees to secure DAL's obligations under the Line of Credit.As additional security for the Line of Credit, one of DAL'soperating subsidiaries, DJS Processing, LLC, collaterally assignedto the Bank a security agreement that it entered into with the LawOffices of David J. Stern, P.A, pursuant to which DJS granted toDJS Processing, LLC a security interest in its accounts receivableand work in process to secure DJS's obligations under a ServicesAgreement between DJS and DJS Processing, LLC.

DAL received a written notice from the Bank dated November 5,2010, that DAL is in default under certain terms of the Line ofCredit and, as a result, the Bank was accelerating the amounts dueunder the Line of Credit and demanding full payment.

In the Notice, the Bank stated that DAL is in default under theLine of Credit due to DAL's failure to repay on the Bank's writtendemand of November 1, 2010 in connection with an over advance onthe Line of Credit of $549,412 which arose due to a reduction inthe amount available under the borrowing base formula. Inaddition, the Bank concluded that recent events have materiallyand adversely affected DAL's financial condition, operations andprospects and its ability to repay the loan. The default on theLine of Credit constitutes a default on an equipment note issuedto Banc of America Leasing & Capital, LLC with a currentoutstanding principal balance of $1,845,389.

The Bank also notified DAL that, due to the default, DAL may notmake any payments to holders of certain subordinated debt underthe terms of a General Subordination and Assignment Agreement withthe Bank. These lenders have waived any default arising from theBank's notice and the failure to make payments under their loansthrough December 31, 2010 or, if earlier, the payment in full ofthe Bank.

Pending the development of DAL's ongoing operating plans, DJSProcessing LLC has not made rent payments for November 2010 underreal estate operating leases for its principal office facilities.A notice of default has been received by DJS, the prior tenant,under one of the leases and by DJS Processing, LLC under anotherlease as a result of the non-payment of rent.

DAL intends to seek longer term forbearance agreements with theBank and its other creditors as it implements plans to restructureits ongoing operations to reflect its significantly reducedrevenues and operations. There can be no assurance that DAL willbe able to obtain forbearance agreements with the Bank or itsother creditors, develop ongoing operating plans that will beacceptable to its creditors or successfully develop and implementthose plans in a timely manner. If it is unable to accomplish anyof the foregoing, it will not be able to continue its businessoperations.

About DJSP Enterprises

Based in Plantation, Florida, DJSP Enterprises, Inc. (Nasdaq:DJSP, DJSPW, DJSPU) provides a wide range of processing servicesin connection with mortgages, mortgage defaults, title searchesand abstracts, REO (bank-owned) properties, loan modifications,title insurance, loss mitigation, bankruptcy, related litigationand other services. Its principal customer is The Law Offices ofDavid J. Stern, P.A. It has additional operations in Louisville,Kentucky and San Juan, Puerto Rico. Its U.S. operations aresupported by a scalable, low-cost back office operation in Manila,the Philippines, that provides data entry and document preparationsupport for its U.S. operations.

David Stern's firm and three other large firms are beinginvestigated by Florida Attorney General Bill McCollum forsubmitting false or misleading statements in foreclosureproceedings.

Credit profiles improved meaningfully in 2010, free cash flow ispositive, liquidity is adequate and for most issuers debtreduction remains a focus. Fitch is concerned about operatingearnings declines in dairy and produce but is cautiouslyoptimistic that the protein industry can manage through a morechallenging cost environment. Moderate pricing is anticipated forcommodity food companies but volume growth will vary acrosscategories.

'Credit upside exists for the industry in 2011, given that theRating Outlooks for Del Monte, Tyson and Smithfield are allPositive,' said Carla Norfleet Taylor, Director at Fitch. 'DelMonte and Tyson are investment grade candidates, and Smithfieldcould be upgraded within the 'B' category if hog production staysprofitable and deleveraging continues. The Rating Outlook forDean Foods, however, could be revised to Negative if the currenttrajectory of operating earnings declines continues.'

Fitch views supply levels as the primary factor for commodity foodpricing in 2011, due to limited brand strength for the industry,value-seeking consumers, and retailer pushback within certain foodcategories. Higher than expected corn, fuel and fluid raw milkcosts or weaker than expected pricing due to increased supply orweak global demand would be negative for the industry.

High feed costs should curb protein production while exports areexpected to grow despite reduced demand from Russia. Volatilityaround European banana supply and pricing, which historicallyoccurs around changes in tariffs, remains a risk for global freshproduce firms but 2011 should be a better year for prices.Private label penetration and negative mix shift have reducedmargins for milk processors and Fitch expects excess capacity andcompetition to limit price increases.

Modest pricing, operating efficiencies, and effective hedgingshould partially mitigate margin compression for commodity foodcompanies. However, significant reductions in operating cashflow, negative FCF, and concerns about liquidity along withviolations of financial covenants could result in Outlookrevisions and or downgrades.

The full report '2011 Outlook: Commodity Food; Credit UpsideExists but Inflationary Cost Pressures and Pricing Concerns Rise'is available on the Fitch Ratings web site 'www.fitchratings.com.'

DYNEGY INC: Voting on Blackstone Deal Extended Until Nov. 23------------------------------------------------------------Dynegy Inc. has moved its special meeting of stockholders to 3:30p.m. central time on November 23, 2010, to provide stockholdersthe opportunity to fully consider the terms of the November 16,2010 amendment to the merger agreement, dated as of August 13,2010, providing for the acquisition of the company by DenaliParent Inc., an affiliate of The Blackstone Group.

Polls will remain open and votes will be accepted on the mergerand adjournment proposals until 4:00 p.m. central time on Tuesday,November 23, 2010.

The Troubled Company Reporter reported the amendments toBlackstone's offer on November 17. Under the terms of the amendedagreement:

* The merger consideration is increased to $5.00 in cash per share, an 11% increase to the previously-agreed consideration of $4.50 per share, and an 80% premium to the closing share price on August 12, 2010; and

* Dynegy has agreed to pay Blackstone a $16.3 million (approximately $0.13 per Dynegy share) break-up fee if the merger is not approved by Dynegy stockholders and if within 18 months Dynegy consummates an acquisition transaction in which Dynegy stockholders receive more than $4.50 per share in consideration.

Dynegy's Board of Directors believes that the 11% increase in themerger consideration, to $5.00 in cash per share, is a veryimportant development that Dynegy stockholders should have anopportunity to consider before there is a vote on both the mergerproposal and, if necessary, the proposal to adjourn the specialmeeting to solicit additional votes for the merger proposal.

The Dynegy Board continues to recommend that all Dynegystockholders approve the transaction with Blackstone, as amended,and receive this superior value.

Dynegy stockholders of record at the close of business on Friday,October 1, 2010, are entitled to vote at the special meeting ofstockholders that has been called to consider the mergeragreement. The special meeting will reconvene at 3:30 p.m.CT/4:30 p.m. ET on Tuesday, November 23, 2010, at the company'scorporate headquarters, 1000 Louisiana St., Houston, Texas 77002.

The Dynegy Board of Directors believes the Blackstone transactionis in the best interest of all Dynegy stockholders because itprovides immediate, certain and fair value to its stockholderswhile reducing the considerable downside risk facing Dynegy if theBlackstone transaction is not approved and completed.

If stockholders have already voted against the Blackstonetransaction, they have every right and the ability to change theirvote, in order to vote in favor of the Blackstone transaction.Stockholders should call MacKenzie Partners, Inc. at (212) 929-5500 (call collect) or (800) 322-2885 (toll-free), or InnisfreeM&A Incorporated toll-free at (877) 750-9499 or banks and brokersmay call collect at (212) 750-5833.

As reported by the TCR on November 17, Dynegy said Carl Icahn'soffer -- to help line up a credit line of up to $2 billion forDynegy if it runs into any financial problems should theBlackstone merger fall through -- does not address the Company'sliquidity issues. While the non-binding Icahn credit facilityproposal would fulfill certain short-term capital needs, Dynegytold shareholders in a statement the Icahn offer does nothing toaddress the Company's long-term funding requirements.

Financial terms of the $2 billion credit line have not beendisclosed.

Dynegy has warned shareholders: "If you oppose the Blackstonetransaction, you risk not only diminishing stockholder value inthe near- to mid-term; you also risk putting Mr. Icahn in aposition to make an offer below the current Blackstone offer."

About Dynegy Inc.

Through its subsidiaries, Houston, Texas-based Dynegy Inc.(NYSE:DYN) -- http://www.dynegy.com/-- produces and sells electric energy, capacity and ancillary services in key U.S.markets. The power generation portfolio consists of approximately12,200 megawatts of baseload, intermediate and peaking powerplants fueled by a mix of natural gas, coal and fuel oil.

Dynegy Inc. and Dynegy Holdings each has a 'B-' issuer defaultrating from Fitch.

In October 2010, Moody's Investors Service lowered the ratings ofDynegy Holdings, including its Corporate Family Rating, to Caa1from B3 along with the ratings of various affiliates or parentcompany Dynegy Inc. The rating outlook for DHI and Dynegy remainsnegative. The rating action follows the expiration of the 40-day"go shop" period, increasing the probability that Dynegy will beacquired by an affiliate of The Blackstone Group L.P. in atransaction valued at approximately $4.7 billion, including theassumption of existing debt. Moody's said Dynegy's financialprofile is expected to be quite fragile, particularly during 2011and 2012, when the company is projected to generate both negativeoperating cash flow and negative free cash flow due to weakoperating margins and the required funding of their capitalinvestment programs. To the extent that the transactions withBlackstone and NRG are not completed, Moody's said downward ratingpressure at DHI and Dynegy will continue to exist given the weakfinancial prospects for the company over the next few yearscoupled with the liquidity concerns.

EASTON BELL: Moody's Upgrades Corporate Family Rating to 'B2'-------------------------------------------------------------Moody's Investors Service upgraded Easton Bell Sports, Inc.'scorporate family and probability of default ratings to B2 from B3because of the company's positive revenue trends and improvedoperating performance in 2010 and Moody's view that these trendswill continue in the near to mid-term. At the same time, Moody'supgraded the $350 million senior secured notes to B2 from B3 andthe speculative grade liquidity rating to SGL-2 from SGL-3. Theoutlook is stable.

The upgrade in Easton Bell's corporate family rating reflect s itspositive revenue trend over the past year driven by increasedconsumer demand for moderately priced sporting goods and newproduct launches. At the same time, cost rationalization effortsimplemented over the last couple of years are benefiting thecompany's operating leverage. "As you would expect, thecombination of these items is resulting in improved creditmetrics, "said Kevin Cassidy, Senior Credit Officer at Moody'sInvestors Service. "For example, financial leverage has come downby about a half a turn to 6.5x from the end of 2009 and Moody'sexpects leverage to decrease below 6x by the end of 2010, "Cassidyadded. Financial leverage includes the debt at Easton's parent.

The upgrade in the liquidity rating to SGL 2 from SGL 3 considersthe additional availability under the $250 million revolvingcredit facility (around $150 million available at September 30th)after recent pay downs and the company's ability to continuegenerating free cash flow despite a challenging economicenvironment. In addition, the SGL-2 rating reflects the company'scash balance of $25 million, the lack of financial maintenancecovenants and no debt maturities until 2015 (holdco notes).

Rating Rationale

Easton's B2 corporate family rating reflects its small scale withrevenue under $800 million, relatively high leverage, highlycompetitive market segments, and a history of earnings volatility.Supporting the B2 rating is Easton-Bell's good liquidity profile,strong brand names and market position and its diversedistribution network with limited concentration with any onecustomer. The company's commitment to deleveraging is alsoincorporated in the B2 rating.

The stable outlook reflects the stabilization of discretionaryconsumer spending, albeit at much lower levels, and Moody'sexpectation that credit metrics will continue to improve in thenear-term. The company's continued focus on product innovation isalso considered in the stable outlook.

While not expected in the near term, a positive outlook couldarise if consumer demand for sporting goods increasessubstantially resulting in much higher earnings. In addition tohigher demand, credit metrics would need to significantly improvebefore the rating was upgraded again. For example, financialleverage would need to approach 4x and EBITA margins would need tomove toward double digits.

EAT AT JOE'S: Posts $4,521 Net Loss in September 30 Quarter-----------------------------------------------------------Eat at Joe's Ltd. filed its quarterly report on Form 10-Q,reporting a net loss of $4,521 of $229,574 of total revenues forthe three months ended Sept. 30, 2010, compared with net income of$172,167 on $182,828 of total revenues for the same period a yearago.

The Company's balance sheet at Sept. 30, 2010, showed$1.41 million in total assets, $4.99 million in total liabilities,and a stockholder's deficit of $3.58 million.

On March 31, 2010, Robison, Hill & Co., in Salt Lake City,expressed substantial doubt about the Company's ability tocontinue as a going concern, following the Company's 2009 results.The independent auditors noted of the Company's recurring netlosses from operations and net capital deficiency.

EL PASO: Moody's Assigns 'Ba1' Rating on New Notes--------------------------------------------------Moody's Investors Service rated El Paso Pipeline OperatingCompany, L.L.C's new notes Ba1. Proceeds from the new notes willbe used to partially fund EPB's purchase of an additional 15%ownership interest in Southern Natural Gas, a regulated interstatepipeline system owned by El Paso Corp. the general partner andmajority owner of EPB. EPB is also acquiring the remaining 49%interest in the Elba Express Pipeline and Southern LNG from EPthat is does not own. Total consideration for the incrementalinterest in SNG, Elba Express, and SLNG is approximately$1.1 billion. EPB will fund the consideration using $415 millionof cash on hand from an equity issuance completed in September andanother $346 million is being raised from a units offering inconjunction with this transaction. These acquisitions willincrease EPB's total ownership interest in SNG to 60% and theinterest in Elba Express and SLNG to 100% each.

Ratings Rationale

"This acquisition is consistent with Moody's expectation thatEPB will continue acquiring additional interests in the assetsin which it does not own a 100% interest with a balance of debtand equity," said Ken Austin, Moody's Vice President. "Theacquisition of the additional interest in SNG, SLNG, and theElba Express Pipeline gives EPB's greater earnings and cashflows from these stable cash flow generating assets while alsoreducing some of EPB's structural complexity."

The Ba1 rating considers the approximate 50% equity fundedpurchase of the additional equity interests. This balancedfunding keeps the company's leverage profile in-line withexpectations for the rating while enhancing the overall scale andfurther improving the balance in earnings and cash flows.

The Ba1 CFR also reflects the structural complexity through equityinterests in some of its assets and the fact that EP is theGeneral Partner of EPB, owns the majority of the L.P. units ofEPB, and also owns the remaining equity interests in EPB's assets.Unlike the natural gas pipelines that are rated investment gradeon a stand-alone basis, the additional feature of the MLPdistributions and the lack of 100% ownership of the equityinterests all of its assets results in the CFR for EPB being twolevels above El Paso but one below the Baa3 rating on thepipelines, given its proportional ownership interest them alongwith EP being the general partners and owner of the remaininginterest in EPB's assets.

The stable outlook assumes that EPB's leverage will remain under4.0x through 2011 after considering a full year of owning 100% ofthe majority of its assets.

However, negative ratings pressure would come from leverage risingto over 4.0x on a sustained basis. Conversely, positive ratingspressure would be driven by the continued acquisition of equityinterests in the assets it owns if executed with sufficient equityto keep leverage in-line with current levels.

Under Moody's Loss Given Default methodology, the new and existingnotes are rated the same as the CFR. The notes are ranked pari-passu with the senior revolving credit facility, which is alsounsecured, making up the majority of the liability waterfall underLGD.

The last rating action for El Paso Pipeline Partners OperatingCompany, L.L.C. was on June 21, 2010, when Moody's rated thecompany's senior notes offering.

El Paso Pipeline Partners L.P. fully and unconditionallyguarantees the notes. The partnership intends to use the netproceeds from the offering partially to fund its acquisition ofthe remaining 49% interests in both Southern LNG Co. L.L.C. and ElPaso Elba Express Co. L.L.C. It will also use the proceeds topurchase an additional 15% interest in Southern Natural Gas Co.from its parent El Paso Corp., to repay the Elba Express projectfinancing term loan, and to reduce outstanding borrowings underits revolving credit facility.

EMPIRE CENTER: Case Dismissed After JPM Took Over Asset-------------------------------------------------------The U.S. Bankruptcy Court for the District of Arizona dismissedthe Chapter 11 case of Empire Center at Coldwater Springs, LLC.

The Debtor related that it has no assets and is unable to confirma plan of reorganization.

The Debtor related that the Court approved the stipulation enteredby its primary secured creditor, JPMorgan Chase Bank, N.A., forstay relief in connection with the Bank's secured lien on theDebtor's principal asset. The real property was comprised ofcertain commercial property located in Avondale, Arizona.

EPV SOLAR: Bankruptcy Court Dismisses Chapter 11 Case-----------------------------------------------------Judge Michael Kaplan of the U.S. Bankruptcy Court for the Districtof New Jersey has, after finding that good and sufficient causeexists for the granting of the relief requested, entered an orderdismissing EPV Solar, Inc.'s Chapter 11 case.

Under the Liquidating Plan, the Debtors' assets will betransferred to a liquidating trust. Treatment under the Plan isas follows: holders of administrative claims, priority tax claims,secured claims and other priority claims will be paid in full incash on the effective date. Holders of general unsecured claimswill receive their pro rata share of available cash as soon aspractical. Holders of FirstFed Financial's common stock willreceive no distribution under the Plan, and all common stockinterests will be canceled and void.

The Court scheduled a January 5, 2011, hearing to consider theDisclosure Statement.

About FirstFed Financial

Irvine, Calif.-based FirstFed Financial Corp. is the bankholding company for First Federal Bank of California and itssubsidiaries. The Bank was closed by federal regulators onDecember 18, 2009.

Flakeboard's B2 CFR rating primarily reflects the company'sleading position in the manufacturing of non-structural compositepanels and Moody's expectations of leverage metrics (adjusted debtto EBITDA) in the 4.5 to 5.5x range. In addition to strongcustomer relationships, the ratings are supported by a competitiveasset base and supportive ownership group. Flakeboard's rating isconstrained by the company's small size and lack ofdiversification, cyclical demand in the non-structural compositepanels sector, and the company's exposure to volatile input costs.

The proposed notes are senior secured obligations of Flakeboardand are rated B2, consistent with the corporate family rating.The proceeds from the proposed note offering (plus a portion ofthe company's cash position) will be used to repay the company'sexisting revolving credit facility, first lien term loan, secondlien term loan and all paid-in-kind interest related to theseinstruments. The proposed notes and related guarantees will besecured on a first priority basis by most of the fixed assets ofthe company and will have a second priority lien on the currentassets that will secure the company's asset-based revolving creditfacility.

Future upward migration for Flakeboard's rating would depend onthe company being able to sustain EBITDA margins in the low-teens,RCF-Capex/Debt above 5%, and Debt/EBITDA below 4.5x on an adjustedbasis. Flakeboard's ratings could face downward ratings pressureas a result of significant price and volume deterioration,persistent negative free cash flow, or a material deterioration inliquidity arrangements. The ratings could also be downgraded ifits leverage ratio exceeds 6.0x on an adjusted basis.

Flakeboard is the largest manufacturer of composite wood panelproducts in North America. The company, which is privately heldand headquartered in Markham, Ontario, produces a broad range ofparticleboard, medium-density fiberboard and a thin high-densityfiberboard called FIBREX(R). These wood panels are used invarious products, including office and residential furniture,retail store fixtures (such as shelving, counters and wallmounts), kitchen and other cabinets, moldings and millwork. Thecompany currently operates six facilities in the US and twofacilities in Canada.

At the same time, S&P assigned FriendFinder's $305 million securedfirst-lien notes due 2013 S&P's issue-rating of 'B' (at the samelevel as the 'B' corporate credit rating on the company) with arecovery rating of '3', indicating its expectation of meaningful(50%-70%) recovery for debtholders in the event of a paymentdefault.

The issue-rating on the company's $232.5 million pay-in-kindsecond-lien notes due 2014 and the $13.8 million cash-pay second-lien notes is 'CCC+' (two notches lower than the 'B' corporatecredit rating) with a recovery rating of '6', indicating S&P'sexpectation of negligible (0%-10%) recovery for debtholders in theevent of a payment default.

The 'B' corporate credit rating incorporates S&P's assumption ofmodest subscriber growth and stable monthly/annual subscriptionfees over the intermediate term. Similar to most servicesdependent on consumer discretionary spending, FriendFinder'ssubscription revenue and subscriber base were negatively affectedby the recession. Since the first quarter of 2010, the companyhas been able to increase its subscriber base and monthly/annualsubscription fees, and reduce subscriber churn. Some notablerisks associated with the company are significant revenue andprofit contribution from one site (AdultFriendFinder.com), highsubscriber churn rate, aggressive financial policy, and high debtleverage. Strong EBITDA margins and good discretionary cash flowonly partially offset these risks.

FriendFinder is an adult social networking and entertainmentcompany. FriendFinder owns and operates Web sites catering tospecific interests, including social networking, liveentertainment, and video and premium services. The company isalso the publisher of Penthouse Magazine.

GENERAL MOTORS: Could Raise Up to $23.1 Billion in IPO------------------------------------------------------The Wall Street Journal's Sharon Terlep and Randall Smith reportthat General Motors Co. is on pace to sell $18.1 billion inshares.

On November 17, GM increased the proposed size of the offering ofits common stock to be sold by certain of its stockholders from365 million shares to 478 million shares. The common stock hasbeen priced at $33.00 per share.

The issue included 478 million shares of common stock, for a totalof $15.77 billion, and 87 million shares of mandatory convertiblejunior preferred stock, for a total of $4.35 billion.

GM said the total offering size will be $20.1 billion or $23.1billion if the underwriters' over-allotment options are fullyexercised.

The underwriters have a 30-day option to purchase up to 71.7million additional shares of common stock from the sellingstockholders, for a total of $2.37 billion, and an additional 13million shares of mandatory convertible junior preferred stockfrom the company on the same terms and conditions, for a total of$650 million, to cover over-allotments, if any.

According to Bloomberg's David Welch, Lee Spears and CraigTrudell, the GM IPO is the second-largest U.S. IPO on record afterVisa Inc.'s $19.7 billion sale in March 2008, a statement and datacompiled by Bloomberg showed. According to Bloomberg, theoverallotment option and a sale of preferred shares may boost thetotal raised to $23.1 billion, more than the $22.1 billion sold byAgricultural Bank of China Ltd. in the largest IPO of common stockin history.

The Journal relates buyers of the GM shares included giant pensionand hedge funds as well as GM factory workers and retirees. Amongforeign buyers was China's largest car maker, SAIC Motor Corp.,which is GM's biggest partner. SAIC bought about $500 million ofshares for a GM stake of close to 1%.

The Journal notes the IPO proceeds will help pay back the U.S.government for the $49.5 billion it spent to bailout GM. The U.S.Treasury will cut its ownership stake in GM to about 26% from 61%through the stock sale, including the overallotments.

Bloomberg data shows the Treasury, which is taking a loss on itsportion of the sale, will break even only if the shares climb morethan 60%. The Treasury needs to sell all of its GM shares at anaverage price of $43.67 to break even on its investment, datacompiled by Bloomberg show.

GM's common shares will be listed on the New York Stock Exchangeunder the ticker GM. It will trade on the Toronto Stock Exchangeunder the ticker GMM.

With its global headquarters in Detroit, Michigan, General MotorsCompany -- http://www.gm.com/-- is one of the world's largest automakers. GM employs 205,000 people in every major region ofthe world and does business in some 157 countries. GM and itsstrategic partners produce cars and trucks in 31 countries, andsell and service these vehicles through the following brands:Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Jiefang,Opel, Vauxhall and Wuling. GM's largest national market is China,followed by the United States, Brazil, Germany, the UnitedKingdom, Canada, and Italy. GM's OnStar subsidiary is theindustry leader in vehicle safety, security and informationservices.

General Motors Co. is 60.8% owned by the U.S. Government. It wasformed to acquire the operations of General Motors Corporationthrough a sale under 11 U.S.C. Sec. 363 following Old GM'sbankruptcy filing. The deal was closed on July 10, 2009, and OldGM changed its name to Motors Liquidation Co. Old GM remainssubject to a pending Chapter 11 reorganization case before theU.S. Bankruptcy Court for the Southern District of New York.

At June 30, 2010, GM had $131.899 billion in total assets,$101.00 billion in total liabilities, $6.998 billion in preferredstock, and $23.901 billion in stockholders' equity.

New GM has a 'BB-' corporate credit rating from Standard & Poor'sand a 'BB-' issuer default rating from Fitch.

The U.S. Trustee has appointed an Official Committee of UnsecuredCreditors and a separate Official Committee of Unsecured CreditorsHolding Asbestos-Related Claims. Lawyers at Kramer Levin Naftalis& Frankel LLP serve as bankruptcy counsel to the CreditorsCommittee. Attorneys at Butzel Long serve as counsel regardingsupplier contract matters. FTI Consulting, Inc., serves asfinancial advisors to the Creditors Committee. Elihu Inselbuch,Esq., at Caplin & Drysdale, Chartered, represents the AsbestosCommittee. Legal Analysis Systems, Inc., serves as asbestosvaluation analyst.

Bankruptcy Creditors' Service, Inc., publishes General MotorsBankruptcy News. The newsletter tracks the Chapter 11 proceedingundertaken by General Motors Corp. and its various affiliates.(http://bankrupt.com/newsstand/or 215/945-7000)

"While Gibson has removed the uncertainty surrounding its abilityto issue audited financial statements, there is now significantliquidity concerns as the recent credit facility amendmentaccelerated the maturity date to September 2011 and the companydoes not have the ability to repay the term loan absent arefinancing," said Kevin Cassidy, Senior Credit Officer at Moody'sInvestors Service.

If Gibson is able to refinance its credit facility in the next fewmonths, its outlook and ratings could experience positivemomentum. However, if Gibson is not able to refinance its creditfacility in this time frame, its ratings will likely come underincreased pressure.

* $100 million ($83 million outstanding) senior secured term loan B due September 2011 at Caa1 (LGD 3, 32% from 31%);

The last rating action was on February 23, 2010, where Moody'sdowngraded the CFR to Caa1 and revised the outlook to developing.

Headquartered in Nashville, Tennessee, Gibson Guitar Corp.primarily manufactures and markets acoustic and electricguitars under the Gibson and Epiphone brand names. The companyalso sells other stringed instruments and instruments relatedaccessories such as amplifiers, speakers, and picks/straps.Revenues for the twelve months ended June 30, 2010, wereapproximately $275 million.

According to Bill Rochelle, the bankruptcy columnist for BloombergNews, the company, owned by Peter Glazier, said revenue for thenine months ended Sept. 30 was $27.2 million. Assets are listedat $15.2 million against debt totaling $26.8 million.

Mr. Rochelle relates that the Chapter 11 filing resulted from aninability to negotiate a loan workout with General ElectricCapital Corp., the secured lender owed $5.8 million. Financialtroubles were increased by employing "too much liquidity" in fivenew restaurants that the company was forced to close, according tocourt papers.

The Debtor did not file its list of largest unsecured creditorswhen it filed its petition.

GREENSHIFT CORP: Delays Filing of Form 10-Q for Third Quarter-------------------------------------------------------------GreenShift Corporation said it could not timely file its quarterlyreport on Form 10-Q for the period ended Sept. 30, 2010, with theSecurities and Exchange Commission because there was a delay incompleting the adjustments necessary to close its books for thequarter.

About Greenshift Corporation

Headquartered in New York, GreenShift Corporation develops andcommercializes clean technologies designed to integrate into andleverage established production and distribution infrastructure toaddress the financial and environmental needs of its clients bydecreasing raw material needs, facilitating co-product reuse, andreducing waste and emissions.

Rosenberg Rich Baker Berman & Company expressed substantial doubtabout the Company's ability to continue as a going concern,following the Company's 2009 results. The independent auditorsnoted that the Company has suffered losses from operations and hasa working capital deficiency as of December 31, 2009.

The Company's balance sheet at June 30, 2010, showed$18.58 million in total assets, $85.11 million in totalliabilities, and a $66.53 million stockholders' deficit.

GSI GROUP: John Roush to Become Next Chief Executive Officer------------------------------------------------------------GSI Group Inc. disclosed that John Roush agreed to join GSI as itsnext Chief Executive Officer. Mr. Roush, 45, joins GSI after asuccessful 12-year career with PerkinElmer, Inc., where he was acorporate officer and served in several senior leadershippositions, most recently as president of PerkinElmer'sEnvironmental Health business. After a brief transition period,during which he will serve in an advisory capacity, Mr. Roush willbecome GSI's Chief Executive Officer by early 2011, succeedingMichael E. Katzenstein, who has served as the Company's interimprincipal executive officer since May 2010. The move successfullycompletes the strategic initiative announced on September 9, 2010to recruit a permanent Chief Executive Officer for the Company.

"We are extremely pleased to have attracted an executive of John'scaliber and experience to lead GSI's development and chart itsgrowth strategy for the future," said Stephen W. Bershad, GSI'sChairman of the Board. "John is uniquely suited to lead ourcompany and to extend GSI's worldwide market and productexpansion. We are excited about the future and look forward toJohn's contributions in shaping our business," added Bershad.

"I am excited for this opportunity to join the GSI team and tolead the organization as it scales its operations to address newmarket opportunities," said Mr. Roush. "The company's strongproprietary technology base, established industry partners andcustomers and large target markets provide a solid foundation fromwhich to build a highly valuable, industry leading company."

The Company together with two of its subsidiaries filed forChapter 11 protection on Nov. 20, 2009 (Bankr. D. Del. Lead CaseNo. 09-14110). William R. Baldiga, Esq., at Brown Rudnick LLP,represented the Debtors as lead counsel. Mark Minuti, Esq., atSaul Ewing LLP, represented the Debtors as its local counsel. TheDebtors selected Garden City Group Inc. as their claims and noticeagent. The Debtors disclosed $555,000,000 in total assets and$370,000,000 in total liabilities as of Nov. 6, 2009.

On May 24, 2010, the Debtors filed a modified Chapter 11 plan withthe Bankruptcy Court, which was supported by eight of tenbeneficial holders of the 2008 Senior Notes, the Equity Committee,and the individual members of the Equity Committee pursuant to aplan support agreement that the Company entered into on May 14,2010, which superseded the prior plan support agreement. Themodified Chapter 11 plan was further supplemented on May 27, 2010,to provide for minor modifications to the May Plan. On May 27,2010, the Bankruptcy Court entered an order confirming andapproving the Final Chapter 11 Plan and the plan documents.

On July 23, 2010, the Debtors consummated their reorganizationthrough a series of transactions contemplated by the Final Chapter11 Plan, and the Final Chapter 11 Plan became effective pursuantto its terms.

The Company's shareholders prior to the emergence from bankruptcyretained approximately 86.1% of its capital stock followingemergence.

HAMTRAMCK, MI: Seeks State Permission to File for Chapter 9-----------------------------------------------------------Mike Wilkinson and Paul Egan, writing for The Detroit News, reportthat the city of Hamtramck has asked the state of Michigan forpermission to file for Chapter 9 bankruptcy protection.

"I'm going to run out of money Jan. 31," said Hamtramck CityManager Bill Cooper said Tuesday, according to Detroit News.

Unable to reach agreements with its unions and waging a courtbattle with Detroit over millions in taxes from the GeneralMotors' Poletown plant, the city is staring at a $3 milliondeficit it cannot solve, Detroit News says.

According to Detroit News, a spokesman for the state TreasuryDepartment said no Michigan municipality has ever declaredbankruptcy. Detroit News notes that under a 1990 state law, amunicipality can't file for bankruptcy without first having anemergency financial manager appointed by the governor.

According to Detroit News, Caleb Buhs, a Treasury Departmentspokesman, said Pontiac, Benton Harbor and Ecorse have emergencyfinancial managers. Hamtramck had one several years ago.

Gov.-elect Rick Snyder is monitoring what he believes is a growingproblem in Michigan, his spokesman said Tuesday.

Detroit News relates Hamtramck has gotten about $2 million a yearfrom a tax-sharing plan with Detroit that centers on the GM plantstraddling the municipal border. But Detroit has withheld paymentfor a number of months, arguing that it had overpaid previously.Hamtramck has since sued its neighbor, but a court resolutioncould take months or longer -- not soon enough, Mayor Cooper said.

Detroit News also relates Mayor Cooper said if his city heads intobankruptcy, he is confident he'll have company soon. "There're alot of towns in trouble," he said.

HEALTH NET: S&P Affirms 'BB' Counterparty Credit Rating-------------------------------------------------------Standard & Poor's Ratings Services said it revised its outlook onHealth Net Inc. and its core and strategically important operatingsubsidiaries to stable from negative. At the same time, S&Paffirmed its 'BB' counterparty credit rating on Health Net Inc.and its 'BBB-' counterparty credit and financial strength ratingson the core subsidiaries, Health Net of California Inc. and HealthNet Life Insurance Co. S&P also affirmed its 'BB+' counterpartycredit and financial strength ratings on the strategicallyimportant subsidiaries, Health Net of Arizona Inc. and Health NetHealth Plan of Oregon Inc.

"The outlook revision to stable from negative reflects S&P'sbelief that Health Net's operating performance stabilized andimproved in 2009 and the first three quarters of 2010," saidStandard & Poor's credit analyst Neal Freedman. "The company'spretax operating earnings of $278 million in the first nine monthsof 2010, with an ROR of 2.8%, and full-year operating earnings of$339 million (2.2% ROR) in 2009 and $312 million (2.0% ROR) in2008 demonstrate this improvement."

In S&P's calculations of operating earnings and ROR, S&P excludethe impact of realized gains and losses, special charges, anddivested operations. (In December 2009, Health Net sold HealthNet of the Northeast Inc.'s licensed subsidiaries toUnitedHealthcare, a UnitedHealthcare Group (NYSE:UNH) company.)Furthermore, S&P expects that the company will continue to improveits earnings through the remainder of 2010 and in 2011.

On May 13, 2010, the Department of Defense awarded Health NetFederal Services LLC the new TRICARE North Region contract. S&Panalyzed the impact that the renewal of the contract will have onHealth Net's consolidated revenues, earnings, and unregulated cashflows. S&P concluded that although the unregulated cash flows tothe holding company will be lower under the new contract, theseunregulated cash flows will remain meaningful enough that S&Praised the rating on Health Net Inc. by one notch. S&P believesthat the unregulated cash flows from the TRICARE contractsdiversify Health Net's earnings and improve the company'sfinancial flexibility.

HENRY COUNTY BANCSHARES: Posts $2.3 Million Net Loss in Q3 2010---------------------------------------------------------------Henry County Bancshares, Inc., filed its quarterly report on Form10-Q, reporting a net loss of $2.3 million on $2.3 million of netinterest income for the three months ended September 30, 2010,compared with a net loss of $1.0 million on $2.1 million of netinterest income for the same period last year.

Provision for loan losses amounted to $1.2 million for the threemonths ended September 30, 2010, compared to a provision of$378,000 for the same period in 2009.

"The Company has been adversely impacted by the continuingdeterioration of the Metropolitan Atlanta real estate marketcausing continuing losses at the Bank, resulting in the Bank beingdeemed significantly undercapitalized at September 30, 2010. OnMay 7, 2010, the Bank entered into a Stipulation and ConsentAgreement with the Federal Deposit Insurance Corporation and theGeorgia Department of Banking and Finance agreeing to the issuanceof a Consent Order. The Order stipulates, among other conditions,that the Bank reach and maintain a Tier 1 capital ratio equal toor exceeding 8%. There is no assurance that the Bank's capitalcan be increased to the level required by the SupervisoryAuthorities. Also, should the Bank's capital not be increased tothe level set forth in the Order, it is uncertain what action theSupervisory Authorities will take. These conditions raisesubstantial doubt about the Company's ability to continue as agoing concern."

The Company's balance sheet at September 30, 2010, showed$563.6 million in total assets, $544.3 million in totalliabilities, and stockholders' equity of $19.2 million.

Mauldin & Jenkins, LLC, in Atlanta, Georgia, expressed substantialdoubt about the Company's ability to continue as a going concern,following the Company's 2009 results. The independent auditorsnoted that the Company has suffered significant losses fromoperations due to the economic downturn, which has resulted indeclining levels of capital.

Henry County Bancshares, Inc., headquartered in Stockbridge,Georgia, is a Georgia business corporation which operates as abank holding company. The Company was incorporated on June 22,1982, for the purpose of reorganizing The First State Bank tooperate within a holding company structure. The Bank is a whollyowned subsidiary of the Company.

The Company's principal activities consist of owning andsupervising the Bank, which engages in a full service commercialand consumer banking business, as well as a variety of depositservices provided to its customers.

HF THREE: U.S. Trustee Unable to Appoint Creditors Committee------------------------------------------------------------Ilene Lashinsky, the United States Trustee for Region 14, hasadvised the U.S. Bankruptcy Court for the District of Arizona thatan official committee of unsecured creditors has not beenappointed in the Chapter 11 case of HF Three I LLC as aninsufficient number of unsecured creditors have expressed interestin serving on the committee. The UST reserves the right toappoint a committee should interest develop among the creditors.

HF Three I LLC is a single-asset real estate company in ParadiseValley, Arizona. It filed for Chapter 11 bankruptcy protection onAugust 18, 2010 (Bankr. D. Ariz. Case No. 10-26198). The Debtordisclosed $26,830,900 in total assets and $21,749,987 in totalliabilities as of the Petition Date.

HOLLYWOOD BEACH: Can Access Cash Collateral Until December 8------------------------------------------------------------The Hon. A. Jay Cristol of the U.S. Bankruptcy Court for theSouthern District of Florida authorized Hollywood Beach GateResort, Inc., to use the cash Park Place Development LLC andMatthew Schloss and Ocean Way Corp., may claim an interest in.

The Bankruptcy Court previously entered an interim order allowingthe Debtor to access cash collateral until December 8, 2010, tofund its Chapter 11 case, pay suppliers and other parties.

As adequate protection for any diminution in value of the lenders'collateral, the Debtors will grant the lenders a replacement lienon the all postpetition property of the Debtor that is of the samenature and type as lender's prepetition collateral.

The Court also ordered that the Debtor's exclusivity period isextended until December 8.

The Court has set a December 8 meeting, to consider the Debtor'srequest to further use the cash collateral, and further extensionsof the exclusivity period.

HOLLYWOOD BEACH: Court Considers Case Dismissal on December 8-------------------------------------------------------------The U.S. Bankruptcy Court for the Southern District of Floridawill convene a hearing on December 8 at 2:00 p.m., to consider therequest to dismiss the Chapter 11 case of Hollywood Beach GateResort, Inc.

Donald F. Walton, the U.S. Trustee for Region 21, asked the Courtto (i) dismiss; (ii) convert the case to one under Chapter 7 ofthe Bankruptcy Code; or (iii) direct the appointment of a Chapter11 trustee. The U.S. Trustee explained that the Debtor is unableto manage its affairs and effectively maneuver through thereorganization process; there is an absence of a reasonablelikelihood of rehabilitation; and an unlikely ability toeffectuate a plan.

INCOMING INC: Incurs $38,300 Net Loss From Aug. 23 - Aug. 31------------------------------------------------------------Incoming, Inc., filed on November 12, 2010, its quarterly reporton Form 10-Q for the three and nine months ended August 31, 2010.

On August 23, 2010, Incoming acquired North American Bio-Energies("NABE"), a bio-diesel plant in Lenoir, North Carolina, for990,000 Class A common shares and 1,980,000 Class B common sharesvalued at $975,914 on the date of acquisition. NABE manufacturesand sells biodiesel to petroleum distributors.

During the period August 24, 2010, through August 31, 2010, theCompany generated revenue in the amount of $2,291 and incurred netlosses of $38,323. The Predecessor, during the period December 1,2009, through August 23, 2010, generated revenue in the amount of$543,211 and generated net income of $134,133. The Predecessorgenerated $269,799 in revenues during the nine months endedAugust 31, 2009. For the same period, the Predecessor incurrednet losses of $171,565.

The Company's balance sheet at August 31, 2010, showed$1.9 million in total assets, $1.2 million in total liabilities,and stockholders' equity of $717,192.

As of August 31, 2010, the Company had a working capitaldeficiency of $280,379, and had accumulated a deficit of$3.8 million.

"Its ability to continue as a going concern is dependent upon theability of the Company to generate profitable operations in thefuture and/or to obtain the necessary financing to meet itsobligations and repay its liabilities arising from normal businessoperations when they come due. The outcome of these matterscannot be predicted with any certainty at this time. Thesefactors raise substantial doubt that the company will be able tocontinue as a going concern."

Headquartered in New York, Incoming, Inc. --http://www.incominginc.com-- is a renewable energy company engaged in the production and distribution of biodiesel andrenewable fuels. The Company's current facility is located inNorth Carolina and its acquisition plan targets productionfacilities in Brazil's emerging green energy market.

INSIGHT HEALTH: Posts $896,000 Net in Q3; Defaults Notes Payment----------------------------------------------------------------InSight Health Services Holdings Corp. filed its quarterly reporton Form 10-Q, reporting net income of $896,000 on $48.26 millionof total revenues for the three months ended Sept. 30, 2010,compared with a net loss of $6.33 million on $50.14 million oftotal revenues for the same period a year ago.

The Company's balance sheet at Sept. 30, 2010, showed$140.10 million in total assets; $310.49 million in total currentliabilities; and $9.26 million in total long-term liabilities, anda stockholder's deficit of $179.66 million.

The Company said it has a substantial amount of debt, whichrequires significant interest and principal payments. As ofSeptember 30, 2010, it has total indebtedness of $298.1 million inaggregate principal amount, including $293.5 million of floatingrate notes which come due in November 2011. The Company electednot to make the scheduled November 1, 2010, interest payment onits floating rate notes in order to preserve its cash position.

As a result of the Company's not paying the scheduled November 1,2010 interest payment, there is currently a default under theindenture governing such notes. The 30-day grace period beforesuch non-payment constitutes an event of default under theindenture will expire on December 1, 2010. The non-payment of thescheduled November 1, 2010, interest payment also constitutes anevent of default under the Company's revolving credit facility.

The Company said, "Because we are in default of our revolvingcredit facility due to the non-payment of the interest and animpermissible qualification, we may not be able to borrow on ourcredit facility after December 1, 2010. If we do not cure theinterest non-payment default that currently exists under theindenture governing our floating rate notes on or prior toDecember 1, 2010, an event of default will arise under suchindenture and the trustee or holders of at least 25% in principalamount of the then outstanding floating rate notes could declarethe principal amount, and accrued and unpaid interest, on alloutstanding floating rate notes immediately due and payable,therefore we have classified the notes as current. In such anevent, we would likely need to seek protection under chapter 11 ofthe Bankruptcy Code."

"In addition, we have suffered recurring losses from operationsand have a net capital deficiency that raises substantial doubtabout our ability to continue as a going concern. Additionally,the opinion of our independent registered public accounting firmfor our fiscal year ended June 30, 2010 contained an explanatoryparagraph regarding substantial doubt about our ability tocontinue as a going concern. Our revolving credit facilityrequires us to deliver audited financial statements without suchan explanatory paragraph within 120 days following the end of ourfiscal year. We were not able to deliver audited financialstatements for our fiscal year end without such an explanatoryparagraph, and as a result we are currently not in compliance withthe revolving credit facility because of an impermissiblequalification default.

"On September 20, 2010, we executed an amendment to our revolvingcredit agreement with our lender whereby the lender has agreed toforbear from enforcing the impermissible qualification defaultunder the agreement, as well as the interest payment default thathas since arisen, and allow us full access to the revolver untilDecember 1, 2010. If we have not remedied both the impermissiblequalification default and the interest payment default by December1, 2010, our lenders could terminate their commitments under therevolver and could cause all amounts outstanding thereunder, ifany, to become immediately due and payable. We did not have anyborrowings outstanding on the revolver as of September 30, 2010and do not currently have any borrowings outstanding on therevolver.

"We currently have approximately $1.7 million outstanding inletters of credit that would need to be cash collateralized in theevent our revolver is eliminated. The amendment reduces the totalfacility size from $30 million to $20 million and reduces theletter of credit limit from $15 million to $5 million, and alsoincreases our interest rate on outstanding borrowings to Prime+2.75% or LIBOR +3.75%, at our discretion. The unused line fee isincreased to 0.75%.

"In any event, we will need to restructure or refinance all or aportion of our indebtedness on or before maturity of suchindebtedness. In the event such steps are not successful inenabling us to meet our liquidity needs or to restructure orrefinance our outstanding indebtedness when due, we would likelyneed to seek protection under chapter 11 of the Bankruptcy Code.

"We have engaged Jefferies & Company and are working closely withthem to develop and finalize a restructuring plan to significantlyreduce our outstanding debt and improve our cash and liquidityposition. We are in discussions with holders of a significantamount of the principal amount outstanding of our floating ratenotes regarding a possible restructuring of our floating ratenotes as part of our previously announced plan to develop andfinalize a restructuring plan to significantly reduce ouroutstanding debt and improve our cash and liquidity position.However we can give no assurances that we will be able torestructure the floating rate notes on commercially reasonableterms or on terms favorable to us, or at all.

"The floating rate notes mature in November 2011 and unless ourfinancial performance significantly improves, we can give noassurance that we will be able cure the existing default under theindenture governing the floating rate notes, meet our interestpayment obligations on the floating rate notes in the future,refinance or restructure the floating rate notes on commerciallyreasonable terms, or redeem or retire the floating rate notes whendue, which could cause us to default on our indebtedness, andcause a material adverse effect on our liquidity and financialcondition. Any such default would likely require us to seekprotection under chapter 11 of the Bankruptcy Code. Anyrefinancing of our indebtedness could be at higher interest ratesand may require us to comply with more restrictive covenants,which could further restrict our business operations and have amaterial adverse effect on our results of operations," said theCompany.

The Company's balance sheet at June 30, 2010, showed$140.7 million in total assets, $321.3 million in totalliabilities, and a stockholders' deficit of $180.6 million.

* * *

PricewaterhouseCoopers LLP, in Orange County, Calif., expressedsubstantial doubt about the Company's ability to continue as agoing concern, following its results for the fiscal year endedJune 30, 2010. The independent auditors noted that the Companyhas suffered recurring losses from operations and has a netcapital deficiency.

INT'L COMMERCIAL: Reports $194,700 Net Loss in 3rd Qtr. 2010------------------------------------------------------------International Commercial Television Inc. filed its quarterlyreport on Form 10-Q, reporting a net loss of $194,686 on $881,459of net sales for the three months ended Sept. 30, 2010, comparedwith a net loss of $137,209 on $744,248 of net sales for the sameperiod a year ago.

The Company's balance sheet at Sept. 30, 2010, showed $911,488million in total assets, $1.78 million in total liabilities, and astockholder's deficit of $877,889.

The accompanying consolidated financial statements have beenprepared assuming the Company will continue as a going concern.The Company noted that it generated negative cash flows fromoperating activities in the nine month period ended September 30,2010 of approximately $245,000, and the Company, for the mostpart, has experienced recurring losses from operations. TheCompany had a negative working capital of approximately $776,000and an accumulated deficit of approximately $6,009,000 as ofSeptember 30, 2010.

Bainbridge Island, Wash.-based International Commercial TelevisionInc. was organized under the laws of the State of Nevada onJune 25, 1998. The Company sells various consumer products. Theproducts are primarily marketed and sold throughout the UnitedStates and internationally via infomercials.

As reported in the Troubled Company Reporter on June 25, 2010,Amper, Politziner & Mattia LLP, in Edison, N.J., expressedsubstantial doubt about the Company's ability to continue as agoing concern, following its 2009 results. The independentauditors noted of the Company's recurring losses from operationsand negative cash flows.

Credit profiles improved meaningfully in 2010, free cash flow ispositive, liquidity is adequate and for most issuers debtreduction remains a focus. Fitch is concerned about operatingearnings declines in dairy and produce but is cautiouslyoptimistic that the protein industry can manage through a morechallenging cost environment. Moderate pricing is anticipated forcommodity food companies but volume growth will vary acrosscategories.

'Credit upside exists for the industry in 2011, given that theRating Outlooks for Del Monte, Tyson and Smithfield are allPositive,' said Carla Norfleet Taylor, Director at Fitch. 'DelMonte and Tyson are investment grade candidates, and Smithfieldcould be upgraded within the 'B' category if hog production staysprofitable and deleveraging continues. The Rating Outlook forDean Foods, however, could be revised to Negative if the currenttrajectory of operating earnings declines continues.'

Fitch views supply levels as the primary factor for commodity foodpricing in 2011, due to limited brand strength for the industry,value-seeking consumers, and retailer pushback within certain foodcategories. Higher than expected corn, fuel and fluid raw milkcosts or weaker than expected pricing due to increased supply orweak global demand would be negative for the industry.

High feed costs should curb protein production while exports areexpected to grow despite reduced demand from Russia. Volatilityaround European banana supply and pricing, which historicallyoccurs around changes in tariffs, remains a risk for global freshproduce firms but 2011 should be a better year for prices.Private label penetration and negative mix shift have reducedmargins for milk processors and Fitch expects excess capacity andcompetition to limit price increases.

Modest pricing, operating efficiencies, and effective hedgingshould partially mitigate margin compression for commodity foodcompanies. However, significant reductions in operating cashflow, negative FCF, and concerns about liquidity along withviolations of financial covenants could result in Outlookrevisions and or downgrades.

The full report '2011 Outlook: Commodity Food; Credit UpsideExists but Inflationary Cost Pressures and Pricing Concerns Rise'is available on the Fitch Ratings web site 'www.fitchratings.com.'

The petition was signed by Lew McGinnis, president of Macco Prop.Inc., managing member.

K-V PHARMA: Delays Filing of Form 10-Q for September 30 Quarter---------------------------------------------------------------In a regulatory filing Friday, K-V Pharmaceutical Companydisclosed that its quarterly report on Form 10-Q for the periodended September 30, 2010, could not be filed within the prescribedtime period. The Company has also not filed its quarterly reportfor the period ended June 30, 2010, and its annual report for thefiscal year ended March 31, 2010.

The Company expects that the report of its independent registeredpublic accounting firm on its annual consolidated financialstatements likely will include an explanatory paragraph disclosingthe existence of substantial doubt regarding the Company's abilityto continue as a going concern. The Company does not expect thatthe substantial doubt will be resolved as of the end of the periodcovered by the Form 10-Q for the quarter ended September 30, 2010.

On March 2, 2009, the Company entered into a consent decree withthe FDA regarding the Company's drug manufacturing anddistribution, which was entered by the U.S. District Court,Eastern District of Missouri, Eastern Division on March 6, 2009.The consent decree requires, among other things, that, beforeresuming manufacturing, the Company retain and have an independentexpert undertake a review of the Company's facilities and certifycompliance with the FDA's current good manufacturing practiceregulations.

The Company's balance sheet as of December 31, 2009, showed$584.46 million in total assets, $440.86 million in totalliabilities, and stockholders' equity of $143.60 million.

LAND VENTURES: Breach of Contract Suit v. Farm Credit Dismissed---------------------------------------------------------------The Hon. William R. Sawyer dismisses Land Ventures for 2, LLC, v.Farm Credit of Northwest Florida, ACA (Bankr. M.D. Ala. Adv. Pro.No. 10-03048), at the defendant's behest. The Complaint accusesFarm Credit of misrepresentation, suppression, and a breach ofcontract. The counts arise from a series of discussions theDebtor and Farm Credit had regarding modifying the Debtor'smortgage, prior to the Debtor filing bankruptcy.

The breach of contract claim arises out of an alleged oral loanmodification. Judge Sawyer says any subsequent loan modificationmust be made in writing and the statute of frauds in both Alabamaand Florida is a valid affirmative defense that bars relief.Judge Sawyer also holds that the claims for misrepresentation andsuppression fail to reach the level of particularity requiredunder Fed.R.Civ.P 9(b). He says the Complaint leaves littledirection as to which state law would be applicable if the casewere to proceed.

A copy of Judge Sawyer's Memorandum Decision, dated November 12,2010, is available at http://is.gd/hhtBGfrom Leagle.com.

Based in Defuniak Springs, Florida, Land Ventures for 2, LLC,filed for chapter 11 bankruptcy protection (Bankr. M.D. Ala. CaseNo. 10-30651) on March 16, 2010. Judge William R. Sawyer presidesover the case. Michael A. Fritz, Sr., Esq., at Fritz & Hughes,LLC, in Montgomery, Alabama, serves as the Debtor's bankruptcycounsel. In its schedules, the Company disclosed $3,162,500 inassets and $1,294,980 in debts.

LEHMAN BROTHERS: $2.1 Billion in Claims Change Hands in October---------------------------------------------------------------One-hundred seventy one claims totaling more than $2.1 billionand EUR1.695 million changed hands in Lehman Brothers' bankruptcycases in October 2010. Among the largest claims traded were:

Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For morethan 150 years, Lehman Brothers has been a leader in the globalfinancial markets by serving the financial needs of corporations,governmental units, institutional clients and individualsworldwide.

Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petitionlisted US$639 billion in assets and US$613 billion in debts,effectively making the firm's bankruptcy filing the largest inU.S. history. Several other affiliates followed thereafter.

On September 19, 2008, the Honorable Gerard E. Lynch, Judge of theU.S. District Court for the Southern District of New York, enteredan order commencing liquidation of Lehman Brothers, Inc., pursuantto the provisions of the Securities Investor Protection Act (CaseNo. 08-CIV-8119 (GEL)). James W. Giddens has been appointed astrustee for the SIPA liquidation of the business of LBI

The Bankruptcy Court has approved Barclays Bank Plc's purchaseof Lehman Brothers' North American investment banking andcapital markets operations and supporting infrastructure forUS$1.75 billion. Nomura Holdings Inc., the largest brokeragehouse in Japan, purchased LBHI's operations in Europe for US$2plus the retention of most of employees. Nomura also boughtLehman's operations in the Asia Pacific for US$225 million.

International Operations Collapse

Lehman Brothers International (Europe), the principal UK tradingcompany in the Lehman group, was placed into administration,together with Lehman Brothers Ltd, LB Holdings PLC and LB UK REHoldings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann andMike Jervis, partners at PricewaterhouseCoopers LLP, have beenappointed as joint administrators to Lehman Brothers International(Europe) on September 15, 2008. The joint administrators havebeen appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.filed for bankruptcy in the Tokyo District Court on September 16.Lehman Brothers Japan Inc. reported about JPY3.4 trillion(US$33 billion) in liabilities in its petition.

LEHMAN BROTHERS: Creditors Panel Backs 2011 Incentive Program-------------------------------------------------------------The Official Committee of Unsecured Creditors in Lehman BrothersHoldings Inc.'s Chapter 11 cases has expressed support forapproval of the Debtors' program to pay bonuses in 2011 toemployees involved in unwinding their derivativesbusiness.

The program, which they call "derivatives employee incentiveplan," offers a performance-based bonus pool of up to$15 million, plus $15 million that has yet to be earned underan incentive program previously approved by the Court.

"The 2011 incentive plan provides the Committee with considerableoversight authority which it will exercise to ensure that theprogram is implemented in a manner that balances its objectiveswith a particular view to minimizing the administrative costs tothe estates," says the Committee's lawyer, Dennis Dunne, Esq., atMilbank Tweed Hadley & McCloy LLP, in New York.

Mr. Dunne adds that the incentive plan will also create benefitsthat outweigh both its costs and the amounts that would otherwisebe incurred to hire and train new employees.

The Debtors estimate that about 175 employees will be required in2011 to wind down their derivatives business. Of this, 150employees will work full-time while the rest will work part-time.

LEHMAN BROTHERS: Partnership Puts Archstone Apartment for Sale---------------------------------------------------------------A Lehman Brothers partnership has put an Archstone apartmentproperty in suburban Washington back on the market, according toa November 10 report by Bloomberg News.

The 539-unit Archstone Crystal Plaza, in Arlington, Virginia, wasvalued at $130 million in 2007 when Lehman Brothers and TishmanSpeyer of New York assumed it through their $22 billion buyout ofArchstone, an apartment REIT in Colorado. Bids for the coreproperty are expected to come in above that level given thecurrent surge of investor interest in the greater Washingtonapartment market, Bloomberg News reported.

Archstone Crystal Plaza was one of four Archstone properties thatwent under contract in 2008 for sale to a joint venture led byRoss Development of Bethesda, Maryland. The deal, however, wasscuttled by Lehman Brothers' bankruptcy filing.

The bankruptcy court overseeing Lehman Brothers' case hasauthorized sales of some Archstone properties including the 884-unit Archstone Gateway in California. The fate of the rest ofthe Archstone portfolio remains unclear, according to the report.

About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For morethan 150 years, Lehman Brothers has been a leader in the globalfinancial markets by serving the financial needs of corporations,governmental units, institutional clients and individualsworldwide.

Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petitionlisted US$639 billion in assets and US$613 billion in debts,effectively making the firm's bankruptcy filing the largest inU.S. history. Several other affiliates followed thereafter.

On September 19, 2008, the Honorable Gerard E. Lynch, Judge of theU.S. District Court for the Southern District of New York, enteredan order commencing liquidation of Lehman Brothers, Inc., pursuantto the provisions of the Securities Investor Protection Act (CaseNo. 08-CIV-8119 (GEL)). James W. Giddens has been appointed astrustee for the SIPA liquidation of the business of LBI

The Bankruptcy Court has approved Barclays Bank Plc's purchaseof Lehman Brothers' North American investment banking andcapital markets operations and supporting infrastructure forUS$1.75 billion. Nomura Holdings Inc., the largest brokeragehouse in Japan, purchased LBHI's operations in Europe for US$2plus the retention of most of employees. Nomura also boughtLehman's operations in the Asia Pacific for US$225 million.

International Operations Collapse

Lehman Brothers International (Europe), the principal UK tradingcompany in the Lehman group, was placed into administration,together with Lehman Brothers Ltd, LB Holdings PLC and LB UK REHoldings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann andMike Jervis, partners at PricewaterhouseCoopers LLP, have beenappointed as joint administrators to Lehman Brothers International(Europe) on September 15, 2008. The joint administrators havebeen appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.filed for bankruptcy in the Tokyo District Court on September 16.Lehman Brothers Japan Inc. reported about JPY3.4 trillion(US$33 billion) in liabilities in its petition.

LEHMAN BROTHERS: Says No Insurance Funds Available for Fogarazzo----------------------------------------------------------------Lehman Brothers Holdings Inc. asked U.S. Bankruptcy Judge JamesPeck to deny a motion filed by a group led by Lawrence Fogarazzo,saying there are no proceeds available under any of its insurancepolicies to pay the claims of the group.

The group earlier moved the Court to lift the automatic stay toallow advancement under Lloyd's of London's insurance policy topay its claims against Lehman Brothers Inc. in a securities fraudaction.

Lloyd's is one of the firms tapped by LBHI to provide insurancecoverage to former and incumbent directors and officers who arefacing various lawsuits, some of which stemmed from the company'sbankruptcy filing.

Richard Krasnow, Esq., at Weil Gotshal & Manges LLP, in New York,said there are no proceeds available under Lehman's insurancepolicies to satisfy the claims, and that the policies that couldhave provided coverage had been terminated in 2004. He addedthat no one from the group has filed a claim against LBHI and itsaffiliated debtors.

The Official Committee of Unsecured Creditors and Lloyd's ofLondon also blocked the approval of the motion.

The Creditors Committee argued that the group "failed todemonstrate that the requisite cause exists to lift the automaticstay" and that it merely relied on "unsupported allegations" thatthe insurance policy issued by Lloyd's of London is not propertyof Lehman estate.

For its part, Lloyd's of London said that the securities fraudaction is currently stayed against LBI, the broker-dealer unitthat was sold to a U.K. bank, and that none from the group hassought relief from the automatic stay in LBI's liquidationproceeding.

The Fogarazzo group defended its move to lift the stay, saying itwould allow advancement under the policy to compensate itsmembers who suffered as a result of LBI's actions. It alsoargued that the Lehman estates would suffer no harm as the groupseeks only to avail of the resources available to it under theinsurance policy.

About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For morethan 150 years, Lehman Brothers has been a leader in the globalfinancial markets by serving the financial needs of corporations,governmental units, institutional clients and individualsworldwide.

Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petitionlisted US$639 billion in assets and US$613 billion in debts,effectively making the firm's bankruptcy filing the largest inU.S. history. Several other affiliates followed thereafter.

On September 19, 2008, the Honorable Gerard E. Lynch, Judge of theU.S. District Court for the Southern District of New York, enteredan order commencing liquidation of Lehman Brothers, Inc., pursuantto the provisions of the Securities Investor Protection Act (CaseNo. 08-CIV-8119 (GEL)). James W. Giddens has been appointed astrustee for the SIPA liquidation of the business of LBI

The Bankruptcy Court has approved Barclays Bank Plc's purchaseof Lehman Brothers' North American investment banking andcapital markets operations and supporting infrastructure forUS$1.75 billion. Nomura Holdings Inc., the largest brokeragehouse in Japan, purchased LBHI's operations in Europe for US$2plus the retention of most of employees. Nomura also boughtLehman's operations in the Asia Pacific for US$225 million.

International Operations Collapse

Lehman Brothers International (Europe), the principal UK tradingcompany in the Lehman group, was placed into administration,together with Lehman Brothers Ltd, LB Holdings PLC and LB UK REHoldings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann andMike Jervis, partners at PricewaterhouseCoopers LLP, have beenappointed as joint administrators to Lehman Brothers International(Europe) on September 15, 2008. The joint administrators havebeen appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.filed for bankruptcy in the Tokyo District Court on September 16.Lehman Brothers Japan Inc. reported about JPY3.4 trillion(US$33 billion) in liabilities in its petition.

The downgrade of Loehmann's Probability of Default Rating to Dfollows the company's November 15, 2010 announcement that it hasfiled for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code.Concurrently, the company's Corporate Family Rating was affirmedat Ca, reflecting the recent event of default, and prospect ofrecovery through reorganization.

Subsequent to the actions, all ratings will be withdrawn. Moody'swill withdraw the ratings because the issuer has enteredbankruptcy.

Loehmann's Capital Corporation, headquartered in The Bronx, NewYork, is an off-price retailer of apparel, accessories, and shoes.

LOEHMANN'S HOLDINGS: Filing of Schedules Extended Until Jan. 14---------------------------------------------------------------The Hon. Robert E. Gerber of the U.S. Bankruptcy Court for theSouthern District of New York extended, at the behest ofLoehmann's Holdings, Inc., et al., the deadline for the filing ofschedules of assets and liabilities, schedules of current incomeand expenditures, statements of financial affairs, and statementsof executor contracts and unexpired leases for 60 days, untilJanuary 14, 2011.

The Debtors said that they have begun compiling the informationthat will be required to complete the Schedules and Statements,but as a consequence of the size and complexity of their businessoperations, the number of creditors and the geographical spread oftheir operations, they have not yet finished this process. TheDebtors need additional time to complete the schedules andstatements, given the numerous critical operational matters thatthe Debtors' accounting and legal personnel must address in theinitial phase of the Chapter 11 Cases, and the volume ofinformation that must be included in the Schedules and Statements.

Bronx, New York-based Loehmann's Holdings, Inc., is a discountretailer with more than 60 stores. The Bronx, New York-basedcompany is owned indirectly by Istithmar PJSC, an investment firmowned by the government of Dubai.

LOEHMANN'S HOLDINGS: Taps Togut Segal as Bankruptcy Counsel-----------------------------------------------------------Loehmann's Holdings, Inc., et al., ask for authorization from theU.S. Bankruptcy Court for the Southern District of New York toemploy Togut, Segal & Segal LLP as bankruptcy counsel, nunc protunc to the date of commencement of the Debtors' cases.

Togut Segal will, among other things:

(a) attend meetings and negotiate with representatives of creditors and other parties in interest;

(b) take necessary action to protect and preserve the Debtors' estates, including prosecuting actions on the Debtors' behalf, defending any action commenced against the Debtors and representing the Debtors' interests in negotiations concerning litigation in which the Debtors are involved, including, but not limited to, objections to claims filed against the estates;

(c) prepare on the Debtors' behalf motions, applications, adversary proceedings, answers, orders, reports and papers necessary to the administration of the estates; and

(d) advise the Debtors in connection their proposed plan of reorganization as set forth in the Restructuring Support Agreement and any alternative restructuring transaction;

Frank A. Oswald, Esq., a member at Togut Segal, assures the Courtthat the firm is a "disinterested person" as that term defined inSection 101(14) of the Bankruptcy Code.

Bronx, New York-based Loehmann's Holdings, Inc., is a discountretailer with more than 60 stores. The Bronx, New York-basedcompany is owned indirectly by Istithmar PJSC, an investment firmowned by the government of Dubai.

LOEHMANN'S HOLDINGS: To Get $6-Mil. Financing on Interim--------------------------------------------------------Loehmann's Holdings, Inc., et al., sought and obtainedauthorization from the Hon. Robert E. Gerber of the U.S.Bankruptcy Court for the Southern District of New York to obtainpostpetition secured financing from a syndicate of lenders led byCrystal Financial LLC as administrative agent, and to use the cashcollateral.

The DIP lenders have committed (i) on an interim basis, up to theaggregate committed amount of $6 million; and (ii) on a finalbasis, up to the aggregated committed amount of $45 million. Acopy of the DIP financing agreement is available for free at:

The Debtors will use the money to repay amounts outstanding underthe Prepetition Credit Agreement and to fund disbursementsincurred in connection with the Chapter 11 case in accordance withthe DIP budget, including without limitation, payment to essentialvendors, warehousemen and freight handlers as approved by theCourt. The Debtors are also authorized to use all of their funds,including the contents of all of the deposit accounts andsecurities accounts, all proceeds, products, rents, issues orprofits of any collateral and any other Cash Collateral inaccordance with the DIP Budget.

The Debtors will prepay 3% of the aggregate loan commitments,payable if the revolving loan commitments are terminated prior toone year from the Petition Date pursuant to the same formula asprovided for in the Prepetition Credit Agreement. Upon entry ofthe final court order, any prepayment fee that is due under thePrepetition Credit Agreement will be waived.

The Debtors will also pay an amount equal to the sum of:

a. 90% of the book value of Eligible Credit Card Receivables;

b. 90% of the book value of Eligible Magazine Subscription Receivables at such time;

c. 90% of the book value of Eligible Inventory multiplied by the NOLV Factor; and

d. 90% of the book value of Eligible In-Transit Inventory and Eligible LC Inventory, multiplied by the NOLV Factor.

The DIP facility will mature in November 2011. The DIP facilitywill incur interest at LIBOR + 8.5%. In the event of default, theDebtors will pay an additional 3% default interest per annum.

The DIP lien is subject to a carve-out, which consists of:(i) Carve-Out Pre-Default: all professional fees and disbursementsincurred by the professionals retained by the Debtors and anystatutory committees appointed in the Chapter 11 cases from thePetition Date set forth in the DIP Budget until the occurrence andcontinuation of an Event of Default, and all fees payable to theU.S. Trustee, up to the amount of $950,000; (ii) Post-Default:(a) $350,000 for professional fees and disbursements incurred bythe professionals retained by the Debtors and any statutorycommittees appointed in the Cases for services rendered afterreceipt by the Debtors, its counsel, counsel to any statutorycommittee and U.S. Trustee fees of a notice of Event of Default,including burial expenses for a Chapter 7 trustee if the cases areconverted.

The Committee will be authorized to use up to $50,000 of theCarve-Out to investigate the validity of the prepetition securedparties' liens.

The Debtors are required to pay a host of fees to the DIP Agent,including: (i) Commitment and Arrangement Fee of $500,000, payable$250,000 on the Closing Date and $250,000 upon entry of the finalborrowing order, in consideration of the DIP Facility and acommitment to provide exit financing; (ii) Unused Commitment Feethat is 0.5% annually of the amount of the unused portion of theDIP Facility; (iii) Letter of Credit Fees that is equal to LIBOR +8.5%; and (iv) $65,000 Monitoring Fee.

The DIP Secured Parties will receive perfected liens and securityinterests on the Credit Parties' respective existing and afteracquired property and assets. The liens on the DIP Collateralwill prime the liens currently securing the prepetitionobligations except for the collateral securing the Debtors'obligations under the lease agreement, but will be subject to allother valid and enforceable senior liens of record, and to theCarve-Out.

All of the DIP Obligations will constitute first-priorityadministrative expense claims against each of the Debtors, withpriority over any and all administrative expenses, adequateprotection superpriority claims and all other claims against theDebtors or their estate.

Within 30 days from the Petition Date, the Debtors must have finalauthorization from the Court on their request to obtain DIPfinancing. Within 45 days from the Petition Date, the Debtorsmust obtain final court authorization extending the Debtors' timeto assume or reject each of its real property leases until 210days after the Petition Date.

By December 1, 2010, the Credit Parties must have filed with theCourt a Plan of Reorganization and Disclosure Statement, each inform and substance satisfactory to the Agent.

By January 14, 2011, the Debtors must obtain court authorizationfor the Disclosure Statement respecting the Plan of Reorganizationby January 7, 2011.

The Credit Parties must have already filed a motion seekingauthorization from the Court to conduct a permitted sale of all orsubstantially all of Credit Parties' assets, which motion will bein form and substance satisfactory to the Agent. By February 7,2011, the Court must have entered an order confirming the CreditParties' Plan of Reorganization. By February 18, 2011, theeffective date of the Plan of Reorganization must occur.

By February 23, 2011, the Court must have entered a final order,in form and substance satisfactory to Agent, authorizing theCredit Parties to engage in a permitted sale of all orsubstantially all of its assets, which sale will be completedwithin 60 days from the date of the order.

As adequate protection to the prepetition secured parties for anydiminution in the value of their respective prepetition collateralresulting from the priming of their liens by the liens in favor ofthe DIP secured parties granted under the DIP Facility, theprepetition agent, on behalf of the prepetition secured parties,will be granted replacement liens on, and security interests inthe prepetition collateral, prepetition superpriority claims andadequate protection payments, subject only to (1) the liens on,and security interests in, the DIP collateral granted to the DIPsecured parties under the DIP Facility, the interim court orderand the final court order, as the case may be, and (2) the Carve-Out.

The Court has set a final hearing for December 6, 2010, at9:45 a.m. prevailing Eastern time, on the Debtors' request toobtain DIP financing and use cash collateral.

The DIP Agent and DIP Lenders are represented by Proskauer RoseLLP.

About Loehmann's Holdings

Bronx, New York-based Loehmann's Holdings, Inc., is a discountretailer with more than 60 stores. The Bronx, New York-basedcompany is owned indirectly by Istithmar PJSC, an investment firmowned by the government of Dubai.

LOTTOMATICA GROUP: Moody's Assigns 'Ba2' Rating to EUR300MM Notes-----------------------------------------------------------------Moody's Investors Service assigned a Baa3 rating to Lottomatica'sproposed five or seven year EUR500 million notes and a Ba2 ratingto a proposed EUR300 million subordinated interest-deferrablecapital securities due 2070. Moody's also upgraded the rating ofLottomatica's EUR750 million subordinated interest-deferrablecapital securities due 2066 to Ba2 from Ba3. The upgrade reflectsa reconsideration of notching in light of recent changes toMoody's Hybrid Tool Kit which is a framework for classifyinghybrid securities based on their relative debt and equitycharacteristics.

Ratings Rationale

The Ba2 rating on the two subordinated interest-deferrable capitalsecurities is two notches below Lottomatica's Baa3 seniorunsecured rating reflecting (i) the existing and proposedsecurities' subordinated ranking in liquidation, and (ii) theissuer's option to defer interest payments on a cumulative basisif no dividends on ordinary and preferred shares have been paid inthe preceding three months.

Lottomatica's Baa3 senior unsecured rating reflects the company'ssolid market position in the global lottery gaming market, itsposition as the market leader in the Italian gaming industry, itssolid profitability, its strong track record of winning andretaining new contracts, and its good growth prospectsinternationally. Key credit risks include higher leverage in 2010due to debt incurred to finance growth and contract renewals.Ratings are also tempered by the slow growth of US lottery salesand slower than anticipated growth in instant tickets in Italy.

The stable outlook reflects Moody's expectation for modest salesand earnings growth from existing lottery contracts, contractextensions and rebids, and net new contracts. It also reflectsthe company's stated commitment to its current rating and Moody'sexpectation that Lottomatica will continue to address its upcomingrefinancing needs well in advance of maturities.

Lottomatica's ratings could be upgraded if debt to EBITDA andEBITDA-capex/interest expense were to sustainably improve to below2.5 times and above 5.0 times, respectively. Ratings could bedowngraded if Lottomatica's operating performance weakens or itsfinancial policies become more aggressive. Specifically, ratingscould be downgraded if the company's debt/EBITDA appears likely toremain above 3.25 times for a sustained period, EBITDA-capex tointerest dropped below 2.5 times or retained cash flow to net debtdeclined below 10%.

Ratings assigned:

Lottomatica Group S.p.A.

-- EUR500 million five or seven year senior unsecured guaranteed notes at Baa3

Lottomatica Group S.p.A. is a global operator and supplier ofonline lottery systems, is the sole concessionaire of the world'slargest lottery in Italy, and has a growing presence in instantticket printing and sports betting. Lottomatica Group S.p.A. ismajority owned by the De Agostini Group, a publishing, media, andfinancial services company.

Fitch's rating actions follow Mediacom's announcement that thecompany entered into a merger agreement with Rocco B. Commisso,Mediacom's founder and chief executive officer, and an entitycreated by Commisso, whereupon closing of the merger all of theoutstanding shares of Mediacom's class A common stock not owned byCommisso will be converted into $8.75 per share in cash takingMCCC private under Commisso's ownership. Fitch estimates that thecash requirements to close the merger agreement will beapproximately $360 million. The merger, which is subject to thereceipt of approval of holders of a majority of Mediacom'soutstanding class A shares not owned by Commisso and other usualclosing conditions, is expected to close during the first half of2011. Fitch expects the transaction will be funded through acombination of borrowings under the company's existing creditfacilities and existing cash balances.

From Fitch's view the transaction initially will weaken Mediacom'scredit profile and stress the company's ability to generate freecash flow relative to Fitch's expectations. Assuming thetransaction as currently contemplated is completely debt financed,leverage for the last 12-month period ending Sept. 30, 2010, wouldincrease to 6.85 times, which is outside of Fitch's expectationsgiven the current rating category. A key consideration duringFitch's review of the transaction include the extent to whichMediacom will utilize its borrowing capacity under its subsidiaryrevolvers to fund the transaction, the company's financialstrategy as a private company as well as its commitment to useexpected free cash flow generation to reduce leverage to a levelmore reflective of its current rating. Prior to the company'sannouncement, Fitch expected that Mediacom's leverage wouldapproximate 6.0x by year-end 2010 (from 6.2x as of the LTM periodending Sept. 30, 2010) and improve to 5.7x by the end of 2011while continuing to generate positive free cash flow during thistimeframe.

On a collective basis the borrowing capacity under Mediacom's twosubsidiary revolving credit facilities totalled approximately$731 million as of Sept. 30, 2010, which when combined with$127.9 million cash provides the company with more than sufficientliquidity to fund the transaction as currently contemplated andaddress the company's ongoing liquidity requirements, including$7 million of scheduled amortization during the balance of 2010,and $26 million of annual amortization during 2011 through 2014.

METRO-GOLDWYN-MAYER: Investors' Break-Up Fee to Have Admin. Status------------------------------------------------------------------Judge Stuart Bernstein issued an order granting administrativeexpense status to the break-up fee and expenses payable under aninvestment agreement between MGM Holdings Inc. and a group ofinvestors.

In his order dated November 12, 2010, Judge Bernstein authorizedMGM Holdings to pay the break-up fee and expenses in full if itaccepts a rival restructuring proposal and if it terminates orrejects the investment agreement.

The investment agreement was hammered out by MGM Holdings,Spyglass, C/G Acquisition LLC, Cypress Entertainment Group Inc.,and Garoge Inc. in connection with their restructuring proposalto convert about $5 billion of claims of lenders under a 2005credit agreement into 100% of the equity in a restructured MGMHoldings.

Under the investment agreement, MGM Holdings is required to paythe investors a break-up fee of $4 million and reimburse them upto $500,000, for their expenses in case it accepts a rivalrestructuring proposal and terminates or rejects the investmentagreement.

The November 12 order also includes a provision grantingadministrative expense status to the fees and expenses MGMHoldings agreed to pay to the investors pursuant to aSeptember 3, 2010 letter of intent.

Any payment to be made will be subject to the requirementsimposed on MGM Holdings and its affiliated debtors under anyapproved order regarding the use of cash collateral, according tothe court order.

At the November 12 hearing, Judge Bernstein asked MGM's lawyer,Jay Goffman, Esq., at Skadden Arps Slate Meagher & Flom LLP, ifthe breakup-fee agreement could be triggered if a better offer ismade for the movie studio, or if it already had been triggered bythe non-material changes to MGM's reorganization plan that weremade under an agreement with Carl Icahn.

Mr. Goffman told the bankruptcy judge the fee has not beentriggered and the company does not expect it to be, according toa November 15 report by Providence Business News.

As of September 30, 2010, the Debtors' unaudited consolidatedfinancial statements, as prepared in accordance with accountingprinciples generally accepted in the United States for interimfinancial statements, included $2,673,772,000 in total assets and$3,451,493,000 in total liabilities

Excluding certain adjustments made by the Company in accordancewith GAAP, the Debtors' total outstanding liabilities would be$5,766,721,000, which includes the total face value of outstandingprincipal and accrued, but unpaid, interest under the CreditAgreement and interest rate swap agreements.

Metro-Goldwyn-Mayer Inc. and 160 of its affiliates on November 3filed Chapter 11 cases (Bankr. S.D.N.Y. Lead Case No. 10-15774),to seek confirmation of their "pre-packaged" plan ofreorganization.

METRO-GOLDWYN-MAYER: Shanghai Film May Pursue Ownership-------------------------------------------------------Shanghai Film Group Corp. may purchase partial or entire equitiesof Metro-Goldwyn-Mayer Studios Inc., according to a November 15,2010 report by China Knowledge Online.

Shanghai Film Group President Ren Zhonglun did not deny reportsabout the rumored acquisition and said that the Chinese companyis in talks to acquire several cinemas in the eastern regions ofthe United States, China Knowledge reported.

Shanghai Film Group is a film, animation and documentaryproduction company owned by Shanghai Media & Entertainment Group.Its studios in China include Shanghai Film Studio, ShanghaiAnimation Film Studio, Shanghai Documentary Film Studio andShanghai Dubbing Studio.

Earlier, Zhou Tiedong, president of China Film PromotionInternational of the China Film Group, said that a Chinesecompany wants to buy a stake of MGM and that the U.S. law firmKaye Scholer LLP is taking care of it.

Mr. Tiedong did not identify the company but speculation pointedto private entertainment group Huayi Brothers Media Group orPolybona Film Distribution Co Ltd., China Daily reported.

Huayi denied that it has any intention to acquire an MGM stakebut Polybona President Yu Dong gave an ambiguous statement.

"Maybe you should ask Wang Zhongjun (chairman of HuayiBrothers)," he was quoted as saying in another Chinese newspaper.He also said that the Chinese film market is growing steadily andwill have a better future if they cooperate with internationalcompanies and enter the global market, China Daily reported.

Many industry insiders, however, are not optimistic about the MGMstake.

Ben Ji, president of Beijing-based Angel Wings Entertainment,said that the most sought after asset of MGM now is its library.

MGM stocks about 4,100 feature films and 10,800 episodes of TVprograms. Censorship and cultural differences, however, couldpose a major challenge to converting them into cash, China Dailyreported.

"For many years MGM has lacked such important things as producerdeals, a global marketing and distribution network, a financingplatform and a multi-media network," China Daily quoted Mr. Ji assaying. Mr. Ji believes MGM is most valuable for Chinesebroadcasters who have platforms and distribution networks butlack content.

"With the Chinese economy's steaming hot growth, Chinese capitalhas bought into international brands such as Volvo and Thinkpad,which has helped fuel the illusion that some Chinese company canbuy MGM," China Daily quoted Mr. Yadi as saying.

As of September 30, 2010, the Debtors' unaudited consolidatedfinancial statements, as prepared in accordance with accountingprinciples generally accepted in the United States for interimfinancial statements, included $2,673,772,000 in total assets and$3,451,493,000 in total liabilities

Excluding certain adjustments made by the Company in accordancewith GAAP, the Debtors' total outstanding liabilities would be$5,766,721,000, which includes the total face value of outstandingprincipal and accrued, but unpaid, interest under the CreditAgreement and interest rate swap agreements.

Metro-Goldwyn-Mayer Inc. and 160 of its affiliates on November 3filed Chapter 11 cases (Bankr. S.D.N.Y. Lead Case No. 10-15774),to seek confirmation of their "pre-packaged" plan ofreorganization.

METRO-GOLDWYN-MAYER: Wins Nod to Sign $500MM Exit Financing Deal----------------------------------------------------------------The U.S. Bankruptcy Court for the Southern District of New Yorkauthorized Metro-Goldwyn-Mayer Studios Inc. and its affiliateddebtors to enter into an agreement with JPMorgan ChaseBank N.A. and J.P. Morgan Securities Inc. for exit financing.

In a three-page order dated November 12, 2010, Judge StuartBernstein authorized the Debtors to enter into the deal with JPMorgan, which arranged a $500 million exit financing, to allowthem to consummate the transactions contemplated under theirJoint Prepackaged Plan of Reorganization.

The $500 million facility, which consists of a six-year term loanfacility and a five-year revolving facility, will also be usedfor working capital and general corporate purposes of theDebtors.

Judge Bernstein also authorized, but not directed, the Debtors toreimburse JPMorgan Chase and J.P. Morgan Securities for theirout-of-pocket fees and expenses, and to make those payments asare necessary to ensure the funds constituting the deposit do notfall below $200,000.

The Debtors were also permitted to indemnify JPMorgan Chase andJ.P. Morgan Securities for claims and damages stemming from theexit financing, except those resulting from negligence or willfulmisconduct.

In consideration for arranging the exit financing, JPMorgan Chaseand J.P. Morgan Securities will receive payment for their feesand expenses pursuant to a letter agreement with the Debtors,which Judge Bernstein also approved in the November 12 order.Those fees and expenses will be treated as allowed administrativeexpenses and may be paid without further court order.

The letter agreement has been filed under seal and will be keptconfidential pursuant to a court order issued last week. Aredacted version of the agreement, however, can be viewed forfree at http://bankrupt.com/misc/MGM_FeeLetter.pdf

"The exit facility is necessary for the Debtors to successfullyemerge from Chapter 11 and to have sufficient funding toimplement their business plan and, therefore, to maximize valueof their estates for the benefit of their creditors," StephenCooper, a member of the Office of the Chief Executive Officer ofMGM Holdings Inc., said in a declaration with the Court.

"Absent approval of the exit financing documents, the Debtorswill be hard-pressed to maintain their proposed emergence time-table," Mr. Cooper said, adding that the Debtors might be forcedto obtain exit financing on significantly less favorable terms.

As of September 30, 2010, the Debtors' unaudited consolidatedfinancial statements, as prepared in accordance with accountingprinciples generally accepted in the United States for interimfinancial statements, included $2,673,772,000 in total assets and$3,451,493,000 in total liabilities

Excluding certain adjustments made by the Company in accordancewith GAAP, the Debtors' total outstanding liabilities would be$5,766,721,000, which includes the total face value of outstandingprincipal and accrued, but unpaid, interest under the CreditAgreement and interest rate swap agreements.

Metro-Goldwyn-Mayer Inc. and 160 of its affiliates on November 3filed Chapter 11 cases (Bankr. S.D.N.Y. Lead Case No. 10-15774),to seek confirmation of their "pre-packaged" plan ofreorganization.

NETWORK COMMUNICATIONS: To File for Ch. 11 if Exchange Fails------------------------------------------------------------Network Communications, Inc. will seek to implement its previouslyannounced financial restructuring by launching an exchange offerwith the holders of its existing 103/4% Senior Notes due 2013, inthe aggregate principal amount of $175 million whereby the holdersof the Senior Notes will be asked to exchange their existingSenior Notes in return for their pro rata share of New CommonStock of NCI and their pro rata share of new senior subordinatedpay-in-kind notes in an aggregate principal amount of up to $45million. The closing of the Exchange Offer is conditioned upon,among other things, (a) 100% of the aggregate principal amount ofSenior Notes being validly tendered and not withdrawn and (b) 100%of the lenders under the Company's senior bank credit facilitiesexecuting an amended and restated credit agreement.

If the Exchange Offer is unsuccessful, as a result of a failure tosatisfy the Minimum Tender Condition or otherwise, the Companywill seek to implement the Restructuring by commencing cases underchapter 11 of the U.S. Bankruptcy Code and seeking confirmation ofa prepackaged plan of reorganization. Therefore, in connectionwith the Exchange Offer, the Company is simultaneously solicitingacceptances of the Prepackaged Plan as an alternative to theExchange Offer.

The Exchange Offer is scheduled to expire at 11:59 P.M., New YorkCity Time, on December 15, 2010, unless extended or earlierterminated by the Company with the consent of certain of theCompany's key stakeholders. Tendered Senior Notes may be validlywithdrawn at any time prior to the expiration time.

The New Securities have not been registered under the SecuritiesAct or any state securities laws and may not be offered or sold inthe United States absent registration or an applicable exemptionfrom such registration requirements.

The Exchange Offer and consent solicitation will be made only toqualified institutional buyers and institutional accreditedinvestors inside the United States and to certain non-U.S.investors located outside the United States.

About Network Communications

Lawrenceville, Ga.-based Network Communications, Inc., is aleading local media company providing lead generation, advertisingand internet marketing services to the housing industry. TheCompany's leading brands are Apartment Finder, The Real EstateBook, DigitalSherpa, Unique Homes, New England Home and AtlantaHomes & Lifestyles.

The Company's balance sheet at December 6, 2009, showed$362.4 million in total assets, $330.3 million in totalliabilities, and stockholders' equity of $32.1 million.

NEVADA STAR: Madison Files Sale-Based Plan for Debtor-----------------------------------------------------Madison Realty Capital, L.P., submitted to the U.S. BankruptcyCourt for the Central District of California a proposed Plan ofLiquidation for Nevada Star, LLC, and Claudia Raffone, and anexplanatory Disclosure Statement.

Madison holds a first priority security interest in and lien uponthe Debtor's multi-unit dwelling facility in New York.

Madison will begin soliciting votes on the Plan following approvalof the adequacy of the information in the Disclosure Statement.

Nevada Star's principal asset is a 49 unit apartment building,located at 114 West 86th Street in New York City, and all fixturesand incidental personal property that is used for the operationsand maintenance of the building.

Ms. Raffone's principal assets are two single family residenceslocated in Beverly Hills, California and Florida.

According to the Disclosure Statement, the Plan seeks toaccomplish payments under the Plan by selling Nevada Star'sproperty and paying creditors with the proceeds of the sale. Ifnecessary, the Plan provides for the sale of Ms. Raffone'sproperty and paying her creditors (some of which overlap withthe claims asserted against Nevada Star).

The Plan will be funded by: (1) turnover of cash from MinuitPartners Property Management LLC; (2) turnover of tenant depositsin possession of Bank of America, N.A.; (3) cash gifted fromMadison to the Raffone estate to pay for the administrative costsof the U.S. Trustee and the Clerk's Office; (4) turnover byMs. Raffone's counsel of the prepetition deposit taken fromMadison's cash collateral, if any; and (5) sale of assets of theestates.

Under the Plan, all secured claims will be paid in full.

Class 6 Priority unsecured claims will be paid in full in cash onclose of escrow or when allowed by the Court, whichever is later.Claims will be paid without interest.

Class 7 Priority unsecured claims will be funded in full in cashon the Effective Date to property manager for building for thebenefit of claim holders.

Each holder of Class 8 general unsecured claims against NevadaStar will be paid a pro rata share of proceeds after payment ofDebtor's costs of sale, administrative claims, secured claims andpriority unsecured claims.

PAETEC HOLDING: Moody's Assigns 'Caa1' Rating to $420 Mil. Notes----------------------------------------------------------------Moody's Investors Service assigned a Caa1 rating to PAETEC HoldingCorp.'s proposed $420 million senior unsecured note issuance. Thecompany will use the net proceeds from the note issuance primarilyto finance the purchase of Cavalier Telephone Corporation for atotal of $460 million, including $336 million in Cavalier netdebt. The remaining $40 million of the purchase will be financedwith cash. In addition, Moody's has changed the ratings on thecompany's senior secured debt to Ba3 from B1, as the new seniorunsecured notes will provide additional loss absorption for theexisting senior secured debt.

PAETEC's B2 corporate family rating and negative rating outlookreflect PAETEC's high leverage for its rating category and modestfree cash flow, compounded by the challenge to turn around andintegrate the acquired Cavalier properties amid the revenuedeclines at Cavalier's non-fiber businesses. In addition, therating reflects Moody's view that the operating environment forCLECs will continue to be difficult. Moody's notes that PAETEC'srevenues have stabilized after declining over the past 24 monthsas the economy is showing signs of a slow recovery. Ratingscontinue to be supported, nonetheless, by PAETEC's operating scaleas, proforma for the Cavalier acquisition, it will become thelargest CLECs operator in the US, and benefits from the potentialfor the Company to drive its cost structure lower by migratingtraffic onto its expanding fiber network and provide a platformfor greater product diversity by utilizing its long-haul and metrofiber assets.

PAETEC's SGL-2 rating reflects Moody's view that it shouldmaintain good liquidity over the coming 12 months. Moody'sbelieves the company will end 2010 with about $100 million incash, and expects Paetec to have full access to its $50 millionrevolver. The company has approximately $6 million stillavailable in its $25 million stock buyback program, authorizedthrough December 31, 2010.

The ratings for the debt instruments reflect both the overallprobability of default for PAETEC, to which Moody's has assigned aB2 PDR, and an average mean family loss given default assessmentof 50%, in line with Moody's LGD Methodology. The senior securedfacilities are secured by a first priority interest in and lien onsubstantially all PAETEC's assets. The company's senior securednotes due 2017 and senior secured revolver are rated Ba3 (LGD2-23%), two notches above the B2 CFR. This rating is one notchlower than the LGD methodology-implied modeling template suggests,being on the cusp of a Ba3 instrument rating, due to Moody'ssubjective adjustments to the LGD framework in order to moreappropriately reflect the perceived collateral coverage of thesedebt obligations relative to the overall waterfall of debts.

Moody's most recent rating action on Paetec was on September 13,2010, when Moody's revised the company's outlook to Negative, andlowered the company's liquidity rating to SGL-2 from SGL-1.

The Company generated approximately $1.6 billion in revenues forLTM 9/30/2010.

POLAR ICE: In Receivership, C$41.6-Mil. of Debt Listed------------------------------------------------------IDEX Online News reports that Polar Ice Diamonds and Polar BearDiamonds are in receivership, listing debts of C$21.6 million toABN Amro (US$21.4 million), and an additional C$21 million(US$20.5 million) to a long list of unsecured creditors, many ofwhom are diamond firms.

According to the report, the Ontario Superior Court of Justiceappointed a receiver for all of the assets, undertakings andproperty of Polar Ice Diamonds (4114159 Canada Inc) and a relatedcompany, Polar Bear Diamonds (9135-8242 Quebec Inc).

The report notes that court documents list four secured creditors,ABN AMRO with a debt of C$21.6 million and C$249,000 owed to theOntario Ministry of Revenue. The report relates that Royal GemIsrael Ltd and Ofer Mizrahi Diamonds lnc are owed an unknownamount.

Ofer Mizrahi Diamonds confirmed to IDEX Online that the companyhas a secured debt of C$0.7 million.

Secured creditors are entitled to receive the proceeds of theforeclosure sale of the pledged assets and must be satisfiedbefore the unsecured creditors, the report says.

The report posts that in addition to the four secured creditors,court documents list some 170 unsecured creditors owed C$20.7million. On the list are KGK with a debt of C$3.7 million, A.Monte (C$1.5 million) and Lazare (C$0.9 million).

IDEX Online News adds that court-appointed receiver, RSM Richter,stated that it is "unable at this time to estimate whether therealizable value of the assets will be sufficient to fully repaythe obligations owing to the secured creditors."

Polar Ice Diamonds and Polar Bear Diamonds are Canadian diamondand diamond jewelry wholesalers. They are part of ArslanianCutting Works.

PRIMUS GUARANTY: S&P Withdraws 'CCC' Counterparty Credit Rating---------------------------------------------------------------Standard and Poor's Ratings Services said that it withdrew its'CCC' counterparty credit rating on Primus Guaranty Ltd. at thecompany's request. At the same time, S&P is withdrawing its 'CCC'senior unsecured issue debt rating.

According to Moody's, the ratings are based primarily on thecompany's firmly established track record and solid competitivemarket position as a specialist underwriter of medicalprofessional liability insurance in the US, as well as its overallstrong financial fundamentals. Additional strengths include thegroup's strong operating profitability and claim handlingdiscipline, its modest underwriting and operational leverageprofile and sound reserve position. Moody's expects thatProAssurance Corporation will maintain good financial flexibility,including access to the public debt, preferred stock and commonequity capital markets, and that holding company leverage will bekept at relatively modest levels (e.g. generally 20% or below).

These strengths are tempered primarily by the company's wellabove-average product risk and lack of product diversification,given its mono-line business profile in a sector of the property-casualty insurance marketplace that -- despite particularly strongperformance in recent years -- has over time exhibited among thehighest level of volatility. Such volatility reflectsunderwriting results and liability claim trends, as well aslitigation trends and state-specific considerations. PRA Grouphas expanded its operations geographically over the course of thepast decade through a series of mergers and acquisitions, with thecompany's two largest states (Alabama and Ohio) comprisingapproximately 30% of the group's gross premiums, and five largeststates accounting for nearly 50%.

In Moody's view, these risk factors temper the company's generallyvery conservative financial profile, which Moody's see asproviding an important buffer to the intrinsically high volatilityand risk characteristics of the sector. Additional considerationincludes the group's active acquisition strategy -- including thepending acquisition of American Physicians Insurance Group, Inc.(APS) as well as its active share repurchase program, andpressures relating to pricing and claim trends in the medicalprofessional liability sector.

Alan Murray, lead analyst for ProAssurance noted: "ProAssurancehas demonstrated very strong operational performance in recentyears, and the company maintains a conservative financial profile,relative to expectations at the current rating level. Murraycontinued: "However, low fixed-income investment returns arelikely to further pressure operating margins, given the relativelylonger duration of MPL liabilities as compared with other propertyand liability insurance segments. Further, over the medium tolong term, Moody's view competition for ProAssurance coming notonly from other insurers, but also in the form of physiciansmoving into hospital captives and large clinic alternative risktransfer programs."

Factors that could lead to a ratings upgrade include these:continued strength of MPL franchise through the underwritingcycle; sustained modest financial leverage profile (e.g. below15%), combined with very strong capital adequacy (e.g. sustainedgross underwriting leverage at 1.5x or below) and solid reserveposition; sustained interest and shareholder dividend coverage inexcess of 8x; and an absence of adverse reserve development (i.e.consistently 0% or better) through the underwriting cycle.Factors that could lead to a ratings downgrade include these:material negative developments in the medical professionalliability environment or legislation that could reduce franchisestrength and/or elevate operational risk; combined ratios at 110%or above; sustained holding company adjusted financial leverage inexcess of 25%, together with sustained interest and preferreddividend earnings and cash-flow coverage below 6x and 4x,respectively; annual adverse reserve development in excess of 3%of total reserves; or gross underwriting leverage at 3x orgreater.

ProAssurance Corporation, based in Birmingham, Alabama and foundedin 1976, is engaged through its subsidiaries in underwritingprofessional liability insurance products primarily to physicians,dentists, other healthcare providers, and healthcare facilities inthe United States. It also engages in the legal professionalliability business. The company's principal competitors includeboth physician owned insurers, as well as diversified nationalcommercial insurers for whom MPL tends to be a relatively smallcomponent of their total operations. The company distributes itsproducts primarily through specialty independent agents(approximately two-thirds), but also on a direct basis(approximately one-third) in certain states and in the podiatryand chiropractic segments through its Podiatry Insurance Companyof America (PICA) subsidiary, which it acquired in April 2009through an all-cash-sponsored demutualization.

ProAssurance Corporation reported consolidated net income of$51.1 million and $129.5 million for the third quarter and firstnine months of 2010, respectively. Shareholders' equity as ofSeptember 30, 2010, amounted to $1.8 billion. The companyrepurchased approximately $55 million worth of its shares in3Q10, and approximately $104 million year-to-date.

PROTEONOMIX INC: Posts $613,700 Net Loss in September 30 Quarter----------------------------------------------------------------Proteonomix, Inc., filed its quarterly report on Form 10-Q,reporting a net loss applicable to common shareholders of $613,693on $21,647 of revenue for the three months ended September 30,2010, compared with a net loss applicable to common shareholdersof $1.1 million on $72,299 of revenue for the same period lastyear.

The Company's balance sheet at September 30, 2010, showed$3.8 million in total assets, $6.3 million in total liabilities,and a stockholders' deficit of $2.5 million.

KBL, LLP, in New York, expressed substantial doubt about theCompany's ability to continue as a going concern, following theCompany's 2009 results. The independent auditors noted that theCompany has sustained operating losses and capital deficits.

QOC I filed for Chapter 11 bankruptcy protection on October 1,2010 (Bankr. S.D. Fla. Case No. 10-40153). Attorneys at GenoveseJoblove & Battista, P.A., serve as counsel to the Debtor. TheDebtor estimated its assets and debts at $100 million to$500 million as of the Petition Date.

REGENERX BIOPHARMA: Posts $1.6 Million Net Loss in Q3 2010----------------------------------------------------------RegeneRX Biopharmaceuticals, Inc., filed its quarterly report onForm 10-Q, reporting a net loss of $1.6 million on $42,690 ofrevenue for the three months ended September 30, 2010, comparedwith a net loss of $1.2 million on $0 revenue for the same periodlast year.

The Company has an accumulated deficit of $88.6 million and hadcash and cash equivalents of $5.0 million as of September 30,2010. Based on the Company's operating plan and a recentlyawarded $733,438 cash grant, the Company believes that itscash and cash equivalents as of September 30, 2010, will fund itsoperations into the second quarter of 2011, without additionalcapital.

The Company's balance sheet at September 30, 2010, showed$5.6 million in total assets, $1.1 million in total liabilities,and stockholders' equity of $4.5 million.

Reznick Group, P.C., in Vienna, Va., expressed substantial doubtabout the Company's ability to continue as a going concern. Theindependent auditors noted that the the Company has experiencednegative cash flows from operations since inception and isdependent upon future financing in order to meet its plannedoperating activities.

Rockville, Md.-based RegeneRx Biopharmaceuticals, Inc.-- http://www.regenerx.com/-- is a clinical-stage drug development company focused on the development of a noveltherapeutic peptide, Thymosin beta 4, for tissue and organprotection, repair and regeneration. RegeneRx currently has threeproducts in clinical development.

RMAA REAL ESTATE: Bank Foreclosure Sale Valid, Court Rules----------------------------------------------------------In August 2010, Access National Bank obtained relief fromautomatic stay to foreclose on real estate owned by RMAA RealEstate Holdings, L.L.C. Three purported creditors, which filed aninvoluntary Chapter 11 bankruptcy petition against RMAA, asked theBankruptcy Court to reconsider and stay the foreclosure saleslated for September 13, 2010, pending appeal. The motion for astay pending appeal was granted, conditioned upon the posting of abond before the foreclosure sale. The foreclosure sale pushedthrough. The petitioning creditors sued, arguing that the salewas not valid because the order granting relief from the automaticstay was itself stayed by Fed.R.Bankr.P. 4001(a)(3) for 14 days.Thus, the automatic stay was in full force and effect and theforeclosure sale was void. Access seeks dismissal of thecomplaint, asserting that the 14-day stay was terminated by theCourt's September 10, 2010 because the order was entered nunc protunc to August 16, 2010. Thus, the bank argues, the automaticstay expired on August 31, 2010 and the foreclosure sale was avalid sale.

The Hon. Robert G. Mayer grants the bank's motion to dismiss,saying the automatic stay was either annulled as of August 31,2010, or terminated pursuant to the amended order entered onSeptember 10, 2010, granting relief nunc pro tunc August 16, 2010.

Judge Mayer says the purpose of the 14-day stay is to permit anunsuccessful party the opportunity to obtain a stay pending appealand thereby preserve the status quo. In the RMAA case, theunsuccessful parties did exactly that. They sought and obtained astay pending appeal and could have prevented the foreclosure saleby posting the requisite bond. They did not do so and theforeclosure sale proceeded as scheduled.

ROBERT LUPO: Emergency Motion to Vacate Conversion Order Denied---------------------------------------------------------------The U.S. Bankruptcy Court for the District of Massachusetts deniedon November 15, 2010, Robert N. Lupo's emergency motion toreconsider the Court's order converting the Debtor's case toChapter 7 effective September 18, 2010. This is the Debtor'sthird attempt to vacate the Court's conversion of the case to oneunder under Chapter 7.

The Court cited that the Debtor has not shown cause forreconsideration of the Court's prior orders converting its case toChapter 7 or that the Debtor's case should be converted to a caseunder Chapter 11. Additionally, the Court said that the Debtor'sproposed plan and disclosure statement is premised upon a numberof questionable assumptions that makes the feasibility of the planto be unlikely.

As reported in the Troubled Company Reporter on June 25, 2010,John P. Fitzgerald, III, Acting U.S. Trustee for Region 1, soughtfor the conversion of the Debtor's case because:

-- the Debtor's amended schedules and statements reflect substantial non-exempt assets available for liquidation and payment to creditors;

-- the Debtor failed to formulate a disclosure statement and a feasible plan in over the six months his case has been pending; and

ROTHSTEIN ROSENFELDT: Chapter 11 Trustee Fights for Funds---------------------------------------------------------Bankruptcy Law360 reports that the bankruptcy trustee siftingthrough the ruins of Rothstein Rosenfeldt Adler PA following ScottRothstein's $1.2 billion Ponzi bust has challenged the districtcourt's decision to let the U.S. government forfeit the bulk ofthe firm's assets and asked to stay the distribution process.

About Rothstein Rosenfeldt

Scott Rothstein, co-founder of law firm Rothstein Rosenfeldt AdlerPA, has been suspected of running a $1.2 billion Ponzi scheme.U.S. authorities claimed in a civil forfeiture lawsuit filedNovember 9, 2009, that Mr. Rothstein, the firm's former chiefexecutive officer, sold investments in non-existent legalsettlements. Mr. Rothstein pleaded guilty to five counts ofconspiracy and wire fraud on January 27, 2010.

Creditors of Rothstein Rosenfeldt Adler signed a petition sendingthe Florida law firm to bankruptcy (Bankr. S.D. Fla. Case No.09-34791). The petitioners include Bonnie Barnett, who says shelost $500,000 in legal settlement investments; Aran Development,Inc., which said it lost $345,000 in investments; and tradecreditor Universal Legal, identified as a recruitment firm, whichsaid it is owed $7,800. The creditors alleged being owed moneyinvested in lawsuit settlements.

Herbert M. Stettin, the state-court appointed receiver forRothstein Rosenfeldt, was officially carried over as the Chapter11 trustee in the involuntary bankruptcy case.

The ABL Credit Agreement provides for a senior secured revolvingcredit facility of up to $400 million. The ABL Credit Agreementrefinances and replaces the existing asset-based credit facilityto which Sally Holdings and such other borrowers are a party.Substantially all of the domestic subsidiaries of Sally Holdingshave guaranteed the obligations of Sally Holdings and itssubsidiaries under the ABL Credit Agreement.

The ABL Facility matures on November 12, 2015. At closing,approximately $89 million was drawn under the ABL Facility and theCompanies have approximately $285 million available for additionalborrowings under the ABL Facility, subject to borrowing baselimitations, as reduced by outstanding letters of credit.

The ABL Facility includes a $25 million sub-limit for swinglineloans and a $50 million sub-limit for letters of credit. Amountsdrawn under the ABL Facility bear annual interest at either anadjusted LIBOR rate plus a margin of 2.25% to 2.75%, or analternate prime rate plus a margin of 1.25% to 1.75%. The interestrate margins are subject to adjustments based on borrowingavailability under the ABL Credit Agreement. The commitment feecalculated on the unused portion of the ABL Facility equals 0.50%per year based on available loan commitments. The ABL CreditAgreement contains a number of negative covenants restricting,among other things, certain distributions, dividends andrepurchases of capital stock and other equity interests,acquisitions, incurrence of secured indebtedness, prepayment ormodification of certain other debt, incurrence of liens, certainmergers, changes in fiscal year and hedging arrangements.

The ABL Credit Agreement also contains a covenant requiring SallyHoldings and its subsidiaries to maintain a fixed-charge coverageratio of at least 1.0 to 1.0 in the event that availability underthe ABL facility falls below certain thresholds. The fixed-chargecoverage ratio is defined as the ratio of (A) EBITDA lessunfinanced capital expenditures to (B) fixed charges. The ABLCredit Agreement contains customary events of default. If anevent of default occurs, the lenders are entitled to acceleratethe advances made thereunder and exercise rights against thecollateral.

The obligations of Sally Holdings and the domestic borrowers underthe ABL Credit Agreement are secured by, among other collateral:

i) a first-priority lien and security interest in, among other things, accounts receivable and inventory of the domestic operations and

ii) a second-priority lien and security interest in substantially all other tangible and intangible personal property owned by Sally Holdings and each domestic subsidiary borrower, subject to certain exceptions.

The obligations of the Canadian borrower under the ABL CreditAgreement are secured by:

i) a first-priority line and security interest in, among other things, accounts receivable and inventory of the Canadian operations,

ii) a second-priority lien and security interest in substantially all other tangible and intangible personal property comprising the Canadian operations, and

iii) a pledge of certain intercompany notes owing to the Dutch entity, in each case, subject to certain exceptions.

The intercompany notes also secure the direct borrowing of theDutch entity. The obligations of Sally Holdings and its domesticsubsidiaries under the ABL Credit Agreement are also secured bysecond-priority liens in certain real property.

Sally Holdings, LLC, based in Denton, Texas, is a leading retailerand distributor of beauty products with over 3,800 stores in 10countries. Annual revenues are around $2.6 billion.

The outlook revision to stable from negative reflects the SeminoleTribe of Florida's settlement -- without any material negativeconsequences to SHRE or the Tribe's gaming operations -- of theNational Indian Gaming Commission's Notice of Violations and theresolution of an Internal Revenue Service audit. The resolutionof these issues alleviates Moody's concern that SHRE -- a wholly-owned subsidiary of the Seminole Tribe of Florida (Ba1/Stable) --would be negatively impacted by regulatory and accounting issuesat the Tribe level.

As a significant portion of SHRE's EBITDA is derived fromlicensing fees received from the Tribe's Hard Rock brandedcasinos, Moody's was concerned that SHRE was exposed to: (1) theuncertainty associated with the Tribe's ability to resolveoutstanding violations to the satisfaction of the NIGC and IRS;and (2) the possibility that the issues with the NIGC or IRS mayhave invited further regulatory and/or accounting scrutiny orresulted in other unintended consequences that could have directlyimpacted the Tribe's gaming operations and hence SHRE's operatingperformance.

The stable outlook also anticipates that leverage and coveragewill not improve materially from existing levels. Debt/EBITDA forthe LTM September 30, 2010 was 6.1 times and EBITA/interest was2.1 times. While Moody's anticipate that the net addition of newcafes and hotels in 2009 and 2010 will contribute positively toEBITDA, Moody's expect that EBITDA growth will be modest in fiscal2011 as the company continues to be challenged by soft consumerspending on casual dining. Additionally, debt levels and interestcosts are not expected to change in the near-term given that thereare no scheduled debt amortization associated with the company'ssenior secured notes due 2014. The notes currently account forall of the company's outstanding funded debt.

In addition to SHRE's high leverage and exposure to soft consumerspending trends on leisure and entertainment, the B2 CorporateFamily Rating reflects the company's modest scale and the factthat a majority of the company's revenue and EBITDA comes from asingle concept -- its company-owned cafes. Ratings support isprovided by SHRE's favorable brand recognition, significantgeographic diversification, and the potential growth from feescoming from casinos branded with the Hard Rock name.

Factors that could cause a downgrade include deterioration inoperating earnings or debt protection measures as a result of aninability to drive profitable same store sales on a sustainedbasis. Specifically, a downgrade could occur if debt to EBITDAexceeded 6.5 times on a sustained basis.

Factors that could result in an upgrade include sustainedimprovement in operating performance and debt protection measuresdriven by profitable same store sales growth. Quantitatively, anupgrade would require the achievement and maintenance ofdebt/EBITDA at no higher than 5.5 times.

1. The case was designated a single asset real estate bankruptcy case;

2. The primary purpose in bringing this Chapter 11 case was to resolve Debtor's indebtedness to FlagStar Bank, FSB, and to reach settlement between those two parties;

3. On June 18, 2010, FlagStar Bank, FSB, and the Debtor entered into a Stipulation Regarding Relief from Automatic Stay and Release, which resolved all disputes between the parties. The Court approved the Stipulation on June 18, 2010;

4. Unsecured creditors can be dealt with in the ordinary course of Debtor's business after the dismissal; and

5. The dismissal of the case is in the best interest of the creditors of the Estate.

Debtor further requests that the Court order that the StipulationRegarding Relief from Automatic Stay and Release between FlagStarBank, FSB and the Debtor survive the dismissal and be enforceableas a contract between the parties.

SIGMA INDUSTRIES: Honors Proposal in Bankruptcy-----------------------------------------------Sigma Industries Inc. has released information about itsreorganization plan. As part of that plan, the Company proceededon November 10 to:

i) consolidate its share capital issued and outstanding, at a ratio of 4 to 1, thus reducing the number of its shares in circulation to approximately 10,724,770 common shares;

ii) cancel all options and all warrants outstanding;

iii) issue secured convertible debentures for a capital of $500,000; and

iv) issue 1,000,000 common shares at a price of $0.40 per share (post-consolidation) in partial settlement ($400,000) of a debt to a secured creditor, conditional on final approval from the TSX Venture Exchang

Sigma's stock symbol "SIC" will be very shortly be replaced by"SSG".

Sigma believes it will be able to complete its private placementof secured convertible debentures of a maximum authorized amountof one million dollars ($1,000,000) by the end of January 2011.These debentures can be converted into units of the Company at anytime until November 10, 2015, in whole or in part. Each unitconsists of one common share at $0.10 and one warrant allowing thepurchase of one common share of Sigma at $0.10 per share. Thewarrants may not be exercised after the debentures expire.

Furthermore, Sigma and Transcam Composites inc. have paid thetrustee in bankruptcy the funds necessary to allow payment of thedividends provided in their respective proposals in bankruptcy andaccordingly have fully satisfied the obligations imposed by theirterms, as indicated by the certificates of performance issued tothem by Ernst & Young inc., trustee in bankruptcy.

Rene Materiaux Composites has also paid the trustee in bankruptcythe funds necessary to allow payment of the first of two dividendsprovided in its proposal in bankruptcy and accordingly has beenissued by Ernst & Young inc., trustee in bankruptcy, the relevantcertificate of partial performance. It is expected that Rene willhave fully met its obligations under the terms of its proposal inbankruptcy by February 9, 2011 at the latest, with the payment of$175,000 to the trustee in bankruptcy.

About Sigma Industries

Sigma Industries Inc., a leading composite and metal productsmanufacturer, has five operating subsidiaries and employs 350people. The Company is active in the growing heavy-duty truck,coach, transit and bus, train and subway, machinery, agriculture,light forestry, and wind energy market segments. Sigma sells itsproducts to original equipment manufacturers and distributors inthe United States, Canada and Europe.

Credit profiles improved meaningfully in 2010, free cash flow ispositive, liquidity is adequate and for most issuers debtreduction remains a focus. Fitch is concerned about operatingearnings declines in dairy and produce but is cautiouslyoptimistic that the protein industry can manage through a morechallenging cost environment. Moderate pricing is anticipated forcommodity food companies but volume growth will vary acrosscategories.

'Credit upside exists for the industry in 2011, given that theRating Outlooks for Del Monte, Tyson and Smithfield are allPositive,' said Carla Norfleet Taylor, Director at Fitch. 'DelMonte and Tyson are investment grade candidates, and Smithfieldcould be upgraded within the 'B' category if hog production staysprofitable and deleveraging continues. The Rating Outlook forDean Foods, however, could be revised to Negative if the currenttrajectory of operating earnings declines continues.'

Fitch views supply levels as the primary factor for commodity foodpricing in 2011, due to limited brand strength for the industry,value-seeking consumers, and retailer pushback within certain foodcategories. Higher than expected corn, fuel and fluid raw milkcosts or weaker than expected pricing due to increased supply orweak global demand would be negative for the industry.

High feed costs should curb protein production while exports areexpected to grow despite reduced demand from Russia. Volatilityaround European banana supply and pricing, which historicallyoccurs around changes in tariffs, remains a risk for global freshproduce firms but 2011 should be a better year for prices.Private label penetration and negative mix shift have reducedmargins for milk processors and Fitch expects excess capacity andcompetition to limit price increases.

Modest pricing, operating efficiencies, and effective hedgingshould partially mitigate margin compression for commodity foodcompanies. However, significant reductions in operating cashflow, negative FCF, and concerns about liquidity along withviolations of financial covenants could result in Outlookrevisions and or downgrades.

The full report '2011 Outlook: Commodity Food; Credit UpsideExists but Inflationary Cost Pressures and Pricing Concerns Rise'is available on the Fitch Ratings web site 'www.fitchratings.com.'

SONJA TREMONT-MORGAN: Files for Bankruptcy in Manhattan-------------------------------------------------------Eric Morath and Jacqueline Palank, writing for Dow Jones' DailyBankruptcy Review, report that Sonja Tremont-Morgan, cast memberof Bravo's "Real Housewives of New York City", filed forChapter 11 bankruptcy protection Wednesday in Manhattan, listing$19.8 million in debt and $13.5 million in assets on herbankruptcy petition.

According to DBR, Ms. Morgan blamed her financial woes on a failedventure with Hannibal Pictures Inc. to make a movie starring JohnTravolta. That film was to be called "Fast Flash to Bang Time,"court papers said.

DBR relates Ms. Morgan said the movie never got off the groundbecause of "various conditions" that Mr. Travolta demanded and herproduction company, Sonja Productions, could not meet. HannibalPictures filed a lawsuit against Sonja Productions in Californiaand won a $7 million judgment.

DBR relates Ms. Morgan said she wasn't adequately represented atthe trial and has filed an appeal. Ms. Morgan also pointed to her"bitter" and unresolved divorce from her husband, a man shedescribed as "many years my senior and a descendant of J.P. Morganand John Adams."

SONRISA REALTY: Hearing on Compass Plan Continued Until Dec. 2--------------------------------------------------------------The U.S. Bankruptcy Court for the Southern District of Texas hascontinued until December 2, 2010 at 10:30 a.m., the hearing toconsider adequacy of the disclosure Statement explainingCompass Bank's proposed Plan of Liquidation for Sonrisa RealtyPartners, Ltd.

Compass Bank, the Debtor's largest secured creditor, will beginsoliciting votes on the Plan following approval of the adequacy ofthe information in the Disclosure Statement.

The Debtor owns approximately 97 acres of unimproved real propertyin League City, Galveston County, Texas.

According to Compass Bank's Disclosure Statement, the Planprovides for the sale of the property via an auction to take placewithin 120 days of the effective date. The property will be soldthrough one or more cash sales or a credit bid sale. The auctionwill be conducted by Tranzon, an auction company handling realestate and business assets.

The net sale proceeds will be distributed by the disbursing agentin accordance with the Plan. The disbursing agent will alsoliquidate any remaining assets and distribute other liquidationproceeds and pre-confirmation remaining assets and distributeother liquidation proceeds and pre-confirmation remaining saleproceeds.

As reported in the Troubled Company Reporter on November 12, theDebtor's bankruptcy plan provides for the sale of 35 acres out ofits 97.5-acre real property in League City, Texas.

The Hon. Letitia Z. Paul denies the Debtor's request as premature.The Debtor asked permission to submit the proposed sale andpurchase agreement to the court under seal, to be examinedincamera. The Debtor also asked to restrain access to the saleagreement from its largest secured creditor, Compass Bank, unlessCompass Bank executes a confidentiality agreement.

Treatment of Claims and Interests

Under Compass Bank's Plan, holder of the allowed secured claim ofCompass Bank will receive: (i) in the event of a cash sale -- allof the net sale proceeds and pre-confirmation remaining saleproceeds less amounts of other claims; and (ii) in the event of acredit bid sale -- any portion of the property sold via creditbid, plus the pre-confirmation remaining sale proceeds.

Each holder of Class 5 General Unsecured Non-Priority claims willreceive its pro rata share of (a) net sale proceeds after paymentin full of allowed claims in Classes 1-4 and funding of thedisbursing agent reserve; and (b) other liquidation proceeds.

All equity interests will be canceled on the effective date.Holders of equity interests as of immediately prior to theeffective date will not receive any payments until Classes 1-5 arepaid in full.

League City, Texas-based Sonrisa Realty Partners, Ltd., was formedto own, develop, and sell unimproved real property. The Companyfiled for Chapter 11 protection (Bankr. S.D. Texas Case No. 10-30084) in Houston on January 4, 2010. Karen R. Emmott, Esq., inHouston, Texas, represents the Debtor. The Company estimated$10 million to $50 million in assets and $1 millionto $10 million in liabilities. In February 2010, the case wastransferred to the Galveston Division. The case was assigned anew case number, Case No. 10-80026.

SONRISA REALTY: Files Schedules of Assets and Liabilities---------------------------------------------------------Sonrisa Realty Partners, Ltd., filed with the U.S. Bankruptcy forthe Southern District of Texas its schedules of assets andliabilities, disclosing:

Green Valley has requested additional time to determine whether tofile a claim against Debtor GVRS. Debtor GVRS believes that it isin the best interest of all parties to grant that additionalrequest in an effort to minimize the costs to the estate and toGreen Valley with regard to potential claims proceedings, whilethe parties move toward resolution of the underlying case.

About Station Casinos

Station Casinos, Inc., is a gaming and entertainment company thatcurrently owns and operates nine major hotel/casino properties(one of which is 50% owned) and eight smaller casino properties(three of which are 50% owned), in the Las Vegas metropolitanarea, as well as manages a casino for a Native American tribe.

In its bankruptcy petition, Station Casinos said that it hadassets of $5,725,001,325 against debts of $6,482,637,653 as ofJune 30, 2009. About 4,378,929,997 of its liabilities constituteunsecured or subordinated debt securities.

STATION CASINOS: Posts $264,152,000 Net Loss in Third Quarter-------------------------------------------------------------Station Casinos, Inc., announced the results of its operations forthe third quarter ended September 30, 2010.

Results of Operations

The Company's net revenues for the third quarter endingSeptember 30, 2010, were approximately $227.0 million, adecrease of 11.2% compared to the prior year's third quarter.The Company reported Adjusted EBITDA for the quarter of$49.2 million, a decrease of 19.9% compared to the prior year'sthird quarter. For the third quarter, the Company reported anet loss of $265.8 million as compared to a net loss of$455.4 million in the prior year's third quarter.

In connection with the Chapter 11 cases to reorganize, thecompany recorded net reorganization items of $21.3 million in thethird quarter. These reorganization items represent professionalfees and other costs incurred as a direct result of the Chapter 11cases of $22.7 million, partially offset by adjustments of swapcarrying values of $1.4 million.

In addition, during the third quarter, the Company incurred$243.4 million in write-downs and other charges, which includednon-cash impairment charges to write down certain portions ofthe Company's goodwill, intangible assets, investments in jointventures, land held for development, and property and equipmentto their fair values, losses on asset disposals and severanceexpense. The Company also incurred $3.7 million of write-downsand other charges, net at its 50% owned joint ventures,$3.8 million in development and preopening expenses includingpreopening expenses of its joint ventures, $2.5 million of expenserelated to equity-based awards and a gain of $0.7 million relatedto its deferred compensation plan.

The Company's third quarter earnings from its Green ValleyRanch joint venture were $1.9 million representing 50% of GreenValley Ranch's operating income. For the third quarter, GreenValley Ranch generated Adjusted EBITDA before management fees of$9.6 million, an increase of 12.9% compared to the same period inthe prior year. Green Valley Ranch reported a net loss of$9.7 million for the third quarter as compared to a net loss of$12.5 million in the same period in the prior year.

Las Vegas Market Results

For the third quarter, net revenues from the Major Las VegasOperations, excluding Green Valley Ranch and Aliante Station, were$218.1 million, a 6.0% decrease compared to the prior year's thirdquarter, while Adjusted EBITDA from those operations decreased0.7% to $57.4 million from $57.8 million in the same period in theprior year. The Major Las Vegas Operations reported a net loss of$104.2 million for the third quarter as compared to a net loss of$24.8 million in the same period in the prior year.

Adjusted EBITDA is not a generally accepted accountingprinciple measurement and is presented solely as a supplementaldisclosure because the Company believes that it is a widely usedmeasure of operating performance in the gaming industry and is aprincipal basis for the valuation of gaming companies.

Balance Sheet and Capital Expenditures

Long-term debt was $5.9 billion as of September 30, 2010, ofwhich $5.7 billion was classified as liabilities subject tocompromise. Total capital expenditures were $6.1 million for thethird quarter which consisted primarily of maintenance capitalpurchases and other projects. Equity contributions to jointventures during the third quarter were $1.1 million.

Station Casinos, Inc., is a gaming and entertainment company thatcurrently owns and operates nine major hotel/casino properties(one of which is 50% owned) and eight smaller casino properties(three of which are 50% owned), in the Las Vegas metropolitanarea, as well as manages a casino for a Native American tribe.

In its bankruptcy petition, Station Casinos said that it hadassets of $5,725,001,325 against debts of $6,482,637,653 as ofJune 30, 2009. About 4,378,929,997 of its liabilities constituteunsecured or subordinated debt securities.

STATION CASINOS: Wins Nod to Amend & Assume HQ Lease With Cole--------------------------------------------------------------Station Casinos, Inc., sought and obtained the Bankruptcy Court'sauthority to amend an office lease dated November 1, 2007, withCole So Las Vegas NV, LLC, and assume that lease as amended. Thelease, referred to as the "HQ Lease," is for a 3-story buildinglocated at 1505 South Pavilion Center Drive, in Las Vegas, Nevada.

The parties engaged in good faith, arms' length negotiations toamend the HQ Lease to provide, among other things, for thereduction in Basic Annual Rent for the Initial Term of the HQLease commencing with the rent period that begins on September 1,2010. In the first four years of the remaining Initial Term ofthe HQ Lease, after the effective date of the Amendment, the BasicAnnual Rent will be reduced according to these terms:

(a) In Lease Year 4, the Basic Annual Rent will be reduced from $5,438,133 to $2,909,718;

(b) In Lease Year 5, the Basic Annual Rent will be reduced from $5,506,110 to $2,909,718;

(c) In Lease Year 6, the Basic Annual Rent will be reduced from $5,574,936 to $3,059,003; and

(d) In Lease Year 7, the Basic Annual Rent will be reduced from $5,644,623 to $3,209,003.

Pursuant to the Amendment, in Lease Years 8 through Year 20, theBasic Annual Rent will be increased pursuant to a set formula;which formula is calculated using the reduced Basic Annual Rentnumbers set forth in the Amendment.

In addition to the reduction in Basic Annual Rent, the landlordconsents to SCI's assumption and assignment of the HQ Lease.

In a declaration, Thomas Friel, executive vice president, chiefaccounting officer, and treasurer of Station Casinos, Inc.,maintained that the Amendment is a proper exercise of the Debtor'sbusiness judgmen

About Station Casinos

Station Casinos, Inc., is a gaming and entertainment company thatcurrently owns and operates nine major hotel/casino properties(one of which is 50% owned) and eight smaller casino properties(three of which are 50% owned), in the Las Vegas metropolitanarea, as well as manages a casino for a Native American tribe.

In its bankruptcy petition, Station Casinos said that it hadassets of $5,725,001,325 against debts of $6,482,637,653 as ofJune 30, 2009. About 4,378,929,997 of its liabilities constituteunsecured or subordinated debt securities.

SYNERGEX: Toronto Stock Exchange Extends Listing Review Process---------------------------------------------------------------Synergex Corporation disclosed that the Toronto Stock Exchange hasgranted the Company an extension of its continued listing reviewprocess. The Company expects to cure its reporting defaults bymid-December after which time it will apply to the SecuritiesRegulatory Authorities for a lifting of the general cease tradeorder.

The impact of the global financial crisis, and foreign exchangefluctuations, resulting in changes in the Company's cost ofcapital in 2009 and earlier in 2010 were significant challengesfor Synergex.

The Company has implemented a restructuring action plan to meetthese challenges, and management expects improvement in the short-term and long-term resulting from significantly lower staffing andother operating costs, as well as improving economic conditions inthe 6 countries in North and South America where Synergex hasactive, ongoing operations.

"In addition to lowering costs, Synergex met these challengesthrough increasing revenue in the Company's logistics operations,which is less capital intensive than the distribution operations.We succeeded in diversifying our products and services within thesupply chain services industry that is our foundation," said DavidAiello, President and CEO. "We have recast our business model andforesee that less capital intensity will be required in order toearn income."

Management will focus on supply chain management services andrelated technologies which is expected to enhance the Company'sfinancial strength and create value for its shareholders.Synergex helps customers optimize cost and customer satisfactionby co-managed planning and order acquisition, and through flawlessexecution of inventory movement between manufacturing plants andfinal customers.

About Synergex Corporation

Synergex is a premier international service provider ofcomprehensive supply chain management services in 6 countriesacross the Americas, specializing in logistics services,distribution, localization, packaging and marketing of digitalentertainment products. Headquartered in Mississauga, Ontario,with operations across North, Central and South America, Synergexserves a broad base of customers that includes a number ofmultinational enterprises. Synergex is listed on the TorontoStock Exchange and trades under the symbol SYX.

TERRA-GEN FINANCE: Moody's Withdraws 'B1' Rating to $240 Mil. Loan------------------------------------------------------------------Moody's Investors Service has withdrawn the B1 senior securedrating on Terra-Gen Finance Company, LLC, affecting $240 millionof senior secured credit facilities. The facilities are made upof a $215 million senior secured term loan and a $25 millionsenior secured working capital facility, both due 2012.

Ratings Rationale

The credit rating has been withdrawn because Moody's InvestorsService believes it has insufficient or otherwise inadequateinformation to support the maintenance of the credit rating.

The Debtors sought and obtained approval from the bankruptcy courtto file under seal certain portions of their statements offinancial affairs and schedules of assets and liabilitiescontaining confidential employee information.

The Debtors identified certain sensitive information that fallswell within the scope of commercial information that may beprotected pursuant to Section 107(b)(1) of the Bankruptcy Code.Section 107(b) provides courts with the power to issue ordersthat will protect entities from potential harm that may resultfrom the disclosure of certain confidential information.

The Debtor added that disclosure of employees' personalinformation in public filings available on the internet wouldcause unnecessary lack of privacy and, in many cases, discomfortfor individual employees, which in turn could have a significantlynegative impact on employee morale.

About TerreStar Networks

Reston, Va.-based TerreStar Corporation (NASDAQ: TSTR)-- http://www.terrestar.com/-- is in the mobile communications business through its ownership of TerreStar Networks, itsprincipal operating subsidiary, and TerreStar Global.

TerreStar Networks, in cooperation with its Canadian partners,TerreStar Canada and TerreStar Solutions, majority-ownedsubsidiaries of Trio 1 and 2 General Partnerships, plans to launchan innovative wireless communications system to provide mobilecoverage throughout the United States and Canada using integratedsatellite-terrestrial smartphones and other devices. This systembuild out will be based on an integrated satellite and ground-based technology intended to provide communication service in mosthard-to-reach areas and will provide a nationwide interoperable,survivable and critical communications infrastructure. TheCompany intends to provide multiple communications applications,including voice, data and video services.

As of June 30, 2010, the Company had four wholly ownedsubsidiaries, MVH Holdings Inc., Motient Holdings Inc., TerreStarHoldings Inc., and TerreStar New York Inc. Motient VenturesHolding Inc., a wholly owned subsidiary of MVH Holdings Inc.,directly holds approximately 89.3% and 86.5% interest in TerreStarNetworks and TerreStar Global, respectively.

TerreStar Networks Inc. and Its affiliates filed voluntarypetitions for relief under Chapter 11 of the United StatesBankruptcy Code in Manhattan (Bankr. S.D.N.Y. Lead Case No.10-15446).

Vincent Loiacono, chief financial officer of TerreStar NetworksInc., also discloses that TerreStar Networks Canada earnedcertain income and incurred expenses other than from employmentor operation of business:

Mr. Loiacono says that TerreStar Networks Canada, on behalf ofitself and its debtor affiliates, made these payments forconsultation concerning debt consolidation, relief under thebankruptcy law or preparation of the Debtors' petition inbankruptcy within a year immediately before the Petition Date:

Reston, Va.-based TerreStar Corporation (NASDAQ: TSTR)-- http://www.terrestar.com/-- is in the mobile communications business through its ownership of TerreStar Networks, itsprincipal operating subsidiary, and TerreStar Global.

TerreStar Networks, in cooperation with its Canadian partners,TerreStar Canada and TerreStar Solutions, majority-ownedsubsidiaries of Trio 1 and 2 General Partnerships, plans to launchan innovative wireless communications system to provide mobilecoverage throughout the United States and Canada using integratedsatellite-terrestrial smartphones and other devices. This systembuild out will be based on an integrated satellite and ground-based technology intended to provide communication service in mosthard-to-reach areas and will provide a nationwide interoperable,survivable and critical communications infrastructure. TheCompany intends to provide multiple communications applications,including voice, data and video services.

As of June 30, 2010, the Company had four wholly ownedsubsidiaries, MVH Holdings Inc., Motient Holdings Inc., TerreStarHoldings Inc., and TerreStar New York Inc. Motient VenturesHolding Inc., a wholly owned subsidiary of MVH Holdings Inc.,directly holds approximately 89.3% and 86.5% interest in TerreStarNetworks and TerreStar Global, respectively.

TerreStar Networks Inc. and Its affiliates filed voluntarypetitions for relief under Chapter 11 of the United StatesBankruptcy Code in Manhattan (Bankr. S.D.N.Y. Lead Case No.10-15446).

(a) requiring these parties to provide certain information necessary to prepare and obtain approval of an application to the Federal Communications Commission to transfer control of TerreStar License Inc. to reorganized TSL and to prepare and obtain a grant of any required petition for declaratory ruling:

* Holders of allowed Senior Secured PIK Notes Claims, allowed Other Unsecured Claims, and Exchangeable PIK Notes Claims in reorganized TSN -- such holder being referred to as a "potential equityholder;" and

* Any entity that, through purchase, acquisition or any other means, obtains or increases the amount of Claims it holds in reorganized TSN, in a way that the Transferee is a Potential Equityholder;

(b) restricting the purchase or sale of any claims against the Debtors during the "Licensing Period" to the extent that purchase or sale of Claims could result in either:

* an entity becoming or ceasing to be a holder of at least 8% of total equity in Reorganized TSN at the expected time of confirmation in Reorganized TSN -- such entity being referred to as a "substantial equityholder;" or

* an entity (y) becoming or ceasing to be the largest holder of equity in Reorganized TSN, or (z) the holder of more than 50% of the total outstanding equity in Reorganized TSN -- such entity being referred to as a "controlling equityholder;" and

(c) establishing notification and hearing procedures to request relief from the Trading Restrictions for the duration of the Licensing Period, which is defined as the period from the day that the FCC Application is submitted with the FCC until the occurrence of the effective date of a Chapter 11 plan of reorganization in the Debtors' cases.

The Debtors' request is designed to protect its interests in aFCC application for the transfer of the control of TSL toreorganized TSL.

The FCC originally authorized TSN in May 2007 to utilize certainspecified spectrum to provide mobile satellite service in theUnited States using a geosynchronous satellite system. InFebruary 2008, TSN assigned that FCC authorization to its whollyowned direct subsidiary, TSL. By January 2010, the FCC furtherauthorized TSL to incorporate an ancillary terrestrial componentto the mobile satellite service system, subject to meetingcertain criteria.

The Debtors recently executed a Restructuring Support Agreementwith their largest secured creditor, EchoStar Corporation, bywhich EchoStar committed (i) to support a plan of reorganizationfor the Debtors consistent with a Restructuring Term Sheetattached to the RSA, and (ii) to backstop a rights offering thatwill repay the Debtors' DIP Facility in full and in cash. TheTerm Sheet contemplates the distribution of new equity inReorganized TSN on the plan effective date to certain of theDebtors' creditors and equity holders.

The issuance of new equity is deemed to cause a change of controlof TSN and control will move from the current equity holders ofTSN's parent, TerreStar Corporation, to the new equity holders,creating Reorganized TSN. The change of control of TSN, in turn,will cause a change of control over TSL, creating Reorganized TSLand, hence, a change in control of the holder of the FCC Licensesthemselves.

This resulting transfer of control of TSL upon consummation ofthe Plan requires prior FCC approval, Ira S. Dizengoff, Esq., atAkin Gump Strauss Hauer & Feld LLP, in New York, notes. Securingregulatory approval for the change of control of TSL toReorganized TSL is also a condition precedent to the EffectiveDate of the Plan as set forth in the Term Sheet and the relatedEquity Purchase Commitment Agreement.

To secure an approval, the Debtors must provide an accuratedescription of the ownership in Reorganized TSN in the FCCApplication, and of the ownership in Reorganized TSN by aliens,foreign corporations, and foreign governments in the petition fordeclaratory ruling, if any, Mr. Dizengoff explains.

If certain trading in TSN Claims is not restricted during theLicensing Period, a Substantial Change may occur. Thus, theDebtors ask Judge Sean Lane to restrict the purchase or sale ofClaims during the Licensing Period to the extent that the processwill change a Substantial Equityholder's or a ControllingEquityholder's ownership in Reorganized TSN.

Mr. Dizengoff reveals that in accordance with Section 310(d) ofthe Communications Act of 1934, as amended, and the CommitmentAgreement, the parties plan to submit the FCC Application to seekFCC approval of the transfer of control of TSN, the parent ofTSL, which in turn directly holds the FCC Licenses, ascontemplated by the Plan and the EPCA.

The FCC's rules and procedures require transfer of controlapplicants to disclose the identity of all proposed equityholders who are expected to have a 10% or greater ownershipinterest, as well as to identify any entities that areexpected to hold either a de jure or a de facto controllinginterest. Affiliated entities will be aggregated and consideredas a single holder in determining ownership and control. Inaddition, the Communications Act limits the equity ownership thataliens, foreign corporations and foreign governments can hold ina licensee.

Upon receipt of the FCC Application, the FCC will review theapplication for completeness. If the FCC Application is deemedsubstantially complete upon that initial review, the FCC willaccept the FCC Application for filing and issue a public noticeseeking public comment regarding the FCC Application. The FCCgenerally may not grant an approval of the FCC Applicationearlier than 30 days following the FCC's issuance of the PublicNotice.

While the FCC Application is pending, the Debtors will berequired to notify the FCC of certain changes to information setforth in the FCC Application either through an administrativeupdate, or via an amendment to the FCC Application if the changeis determined to be "substantial."

If an amendment to the FCC Application is filed, the amendmentmay need to be placed on Public Notice for an additional 30 days,which would essentially restart the Public Notice Period relatingto the FCC's review of the FCC Application.

Unless restricted, the trading of Claims against the Debtorswhile the FCC Application is pending could require the Debtors tofile an amendment to the FCC Application because even a smalltransaction by an entity not disclosed in the FCC Applicationcould cause that entity to become a Substantial Equityholder, Mr.Dizengoff points out.

To be able to gather all the needed information, the Debtors askthe Court to require any Claim Transferee and all PotentialEquityholders to provide to the Debtors' counsel, within sevenbusiness days of the subject transaction:

A. name, address, citizenship, and the percentage of Reorganized TSN voting and equity stock to be held by the Potential Equityholder;

B. name, address, citizenship, and the percentage of voting and equity stock of those equity holders that directly or, by and through intermediate subsidiaries or entities, indirectly hold a voting and/or equity interest in the Potential Equityholder;

C. the percentage of foreign equity and voting ownership of that entity as determined in a manner consistent with the FCC's rules and policies with respect to calculating foreign ownership for purposes of demonstrating compliance with Section 310(b) of the Communications Act; and

D. for all foreign entities, (1) the country of a foreign entity's incorporation, organization or charter, (2) the nationality of all investment principals, officers, and directors, (3) the country in which the world headquarters is located, (4) the country in which the majority of the tangible property, including production, transmission, billing, information, and control facilities, is located, and (5) the country from which the foreign entity derives the greatest sales and revenues from its operations.

To further ensure compliance with the Trading Restrictions, theDebtors propose these notification and hearing procedures:

A. Acquisition Notice: During the Licensing Period, prior to the consummation of any transfer of any Claim against the Debtors that would result in an entity becoming a Substantial Equityholder or a Controlling Equityholder upon emergence, the Transferee will file with the Court, and serve on the Debtors' counsel, advance written notice of the intended transfer. The Acquisition Notice must include an opinion by counsel to the Transferee that it is reasonably likely that the proposed transaction will not constitute a Substantial Change to the FCC Application and therefore, not trigger a new Public Notice Period.

B. Disposition Notice: During the Licensing Period, prior to the consummation of any transfer of any Claim against the Debtors that would result in an entity ceasing to be a Substantial Equityholder or Controlling Equityholder upon emergence, the transferor will (i) complete and provide Section Five of the FCC Ownership Questionnaire to counsel to the Debtors by the Disclosure Date and (ii) file with the Court, and serve on counsel to the Debtors, advance written notice of the intended transfer. The Disposition Notice must include an opinion by counsel to the transferor that it is reasonably likely that the proposed transaction will not constitute a Substantial Change to the FCC Application and therefore, not trigger a new Public Notice Period.

C. Objection Procedures: The Debtors will have 10 business days after receipt of an Acquisition Notice or a Disposition Notice to file with the Court and serve on the entity filing the Transfer Notice an objection to the proposed transfer on the grounds that it is not reasonably acceptable to Debtors.

If an objection is filed, the concerned entity will not proceed with the proposed transaction unless (i) the objection is withdrawn or overruled, or (ii) the proposed transaction is approved by a final and non-appealable order of the Bankruptcy Court.

If no objection to a Transfer Notice is filed within 10 business day period, the transaction may proceed solely as set forth in the Transfer Notice.

The only way for the Debtors to verify, with certainty, that theFCC Application is and remains complete and accurate is throughthe disclosure of Equityholder Information by PotentialEquityholders and Transferees, Mr. Dizengoff insists.

The Trading Restrictions are also necessary for the Debtors toavoid incurring unnecessary additional costs, because changes inthe identity of the Substantial and Controlling Equityholders mayprolong the Licensing Period, Mr. Dizengoff notes. TheRestrictions, he adds, are narrowly tailored, do not bar tradingof all claims, and are limited in duration.

The Trading Procedures, he further asserts, are both fair andnecessary to ensure the expeditious approval of the FCCApplication and therefore the Debtors' emergence from bankruptcy.

The Court will hear the Debtors' request on November 22, 2010, at11:00 a.m. prevailing Eastern Time. Objections are due no laterthan November 15, at 5:00 p.m. prevailing Eastern Time.

About TerreStar Networks

Reston, Va.-based TerreStar Corporation (NASDAQ: TSTR)-- http://www.terrestar.com/-- is in the mobile communications business through its ownership of TerreStar Networks, itsprincipal operating subsidiary, and TerreStar Global.

TerreStar Networks, in cooperation with its Canadian partners,TerreStar Canada and TerreStar Solutions, majority-ownedsubsidiaries of Trio 1 and 2 General Partnerships, plans to launchan innovative wireless communications system to provide mobilecoverage throughout the United States and Canada using integratedsatellite-terrestrial smartphones and other devices. This systembuild out will be based on an integrated satellite and ground-based technology intended to provide communication service in mosthard-to-reach areas and will provide a nationwide interoperable,survivable and critical communications infrastructure. TheCompany intends to provide multiple communications applications,including voice, data and video services.

As of June 30, 2010, the Company had four wholly ownedsubsidiaries, MVH Holdings Inc., Motient Holdings Inc., TerreStarHoldings Inc., and TerreStar New York Inc. Motient VenturesHolding Inc., a wholly owned subsidiary of MVH Holdings Inc.,directly holds approximately 89.3% and 86.5% interest in TerreStarNetworks and TerreStar Global, respectively.

TerreStar Networks Inc. and Its affiliates filed voluntarypetitions for relief under Chapter 11 of the United StatesBankruptcy Code in Manhattan (Bankr. S.D.N.Y. Lead Case No.10-15446).

Representing Spring Nextel, Eric T. Moser, Esq., at K&L GatesLLP, in New York, contends that the DIP Motion is the first stepin a proposed process that is intended to transfer substantiallyall value from the Debtors' valuable spectrum licenses to theDebtors' secured lenders even though those lenders have nosecurity interest in those licenses.

One of the Debtors' assets is their license to use 20 MHz ofspectrum in the 2 GHz spectrum band. The S-Band License iscurrently held by TerreStar License, Inc., a wholly ownedsubsidiary of TerreStar Networks, Inc. TLI has no ongoingoperations and was formed solely to hold licenses and relatedregulatory approvals. Since the Federal CommunicationsCommission prohibit the grant of a security interest in an FCC-granted radio spectrum license, the FCC Licenses, including thevaluable S-Band License, are unencumbered assets, Mr. Moserrelates. Even if a security interest could be granted in the FCCLicenses or the proceeds thereof, that security interest would besubordinate to obligations imposed by the FCC, including certainreimbursement obligation owed to Sprint Nextel, Mr. Moserasserts.

Sprint Nextel is a significant unsecured creditor in the Debtors'Chapter 11 cases and will be directly harmed if the FCC Licensesare transferred, Mr. Moser tells Judge Lane. He maintains thatthat since the FCC Licenses held by TLI are unencumbered, Sprintis entitled to share in any distribution of value derived fromthe FCC Licenses on at least a "pari passu" basis.

Sprint Nextel has a claim of more than $100 million against TLIand each of the other debtor entities, according to Mr. Moser.

Specifically, Sprint Nextel argues that:

* There is no justification for TLI to be a guarantor of the DIP Financing. If a guaranty is provided it should be limited in scope and should require that (i) the DIP Lenders first seek repayment from the Debtor entities that actually receive proceeds of the DIP Financing, and (ii) the amount of the guaranty provided by TLI will not exceed the value of the benefit, if any, that TLI actually receives from the DIP Financing;

* Any order approving the DIP Financing should clarify (i) that entry of the order does not constitute a determination of the scope, validity, or priority of any claims against TLI or any purported prepetition liens in the Debtors' spectrum licenses or the proceeds thereof, (ii) that all parties-in-interest remain free to contend that the Debtors' spectrum licenses, and any proceeds or economic benefit thereof, are not subject to the prepetition liens of the Senior Secured Noteholders, and (iii) that any challenge is not subject to any deadline otherwise contained in the DIP Order regarding the imposition of claims against the Senior Secured Noteholders; and

* The DIP Financing should not be conditioned on the assumption of the Restructuring Support Agreement or the overly aggressive Milestone Requirements.

Counsel to Solus Alternative and Remus Holdings, SusheelKirpalani, Esq., at Quinn Emanuel Urquhart & Sullivan LLP, in NewYork, contends that the Debtors' DIP Financing Motion will"propel these cases down an irreversible, predetermined coursecharted for the singular purpose of serving EchoStar's interestsat the expense -- and to the detriment of all otherstakeholders."

Mr. Kirpalani also argues that the DIP Agreement restrict theDebtors' ability to appropriately exercise their fiduciaryduties. The DIP Credit Agreement, he maintains, is improperlytied to the Restructuring Support Agreement the Debtors enteredinto with EchoStar Corporation because the two documents containcross-defaults that give EchoStar, as DIP lender, the unilateralcontrol over the Chapter 11 reorganization.

"A DIP Agreement should work to assist the Debtor in building abridge to emergence, not to misappropriate assets and the Chapter11 process to a single stakeholder," Mr. Kirpalani says, onbehalf of Solus Alternative and Remus Holdings.

Harbinger Capital supports Solus Alternative's arguments.Counsel to Harbinger Capital, Debra A. Dandeneau, Esq., at WeilGotshal & Manges LLP, in New York, relates that HarbingerCapital's primary objection to the DIP Financing is its link tothe Restructuring Support Agreement. " The DIP Financing shouldbe used by the Debtors to benefit all stakeholders in these casesand increase the potential distributions to those stakeholders,"Ms. Dandeneau says.

MAST Capital Seeks Change to Proposed Final Order

MAST Capital Management LLC asserts that the form of Final DIPFinancing Order proposed by the Debtors should be modified toaddress its concerns.

Mark R. Somerstein, Esq., at Ropes & Gray LLP, in New York,relates that MCM has these concerns:

1. Lenders under the prepetition Purchase Money Credit Agreement are oversecured; and

2. The Final Order improperly proposes that the Superpriority Claims granted in respect of the DIP Obligations will have priority over all claims.

Mr. Somerstein contends that the Debtors premise the grant ofsomewhat limited forms of adequate protection to the PMCA Lendersupon the presumption that the value of the Prepetition PMCAObligations substantially exceeds the value of the PMCACollateral. He points out that the Final Order, however, failsto make a specific finding in that regard.

Mr. Somerstein further relates that the DIP Lenders should not bepermitted to effectuate a "backdoor priming" if the PMCACollateral declines in value during the pendency of the Debtors'bankruptcy cases. Therefore, the priority of the PMCA Claimsshould be elevated above the Superpriority Claims.

About TerreStar Networks

Reston, Va.-based TerreStar Corporation (NASDAQ: TSTR)-- http://www.terrestar.com/-- is in the mobile communications business through its ownership of TerreStar Networks, itsprincipal operating subsidiary, and TerreStar Global.

TerreStar Networks, in cooperation with its Canadian partners,TerreStar Canada and TerreStar Solutions, majority-ownedsubsidiaries of Trio 1 and 2 General Partnerships, plans to launchan innovative wireless communications system to provide mobilecoverage throughout the United States and Canada using integratedsatellite-terrestrial smartphones and other devices. This systembuild out will be based on an integrated satellite and ground-based technology intended to provide communication service in mosthard-to-reach areas and will provide a nationwide interoperable,survivable and critical communications infrastructure. TheCompany intends to provide multiple communications applications,including voice, data and video services.

As of June 30, 2010, the Company had four wholly ownedsubsidiaries, MVH Holdings Inc., Motient Holdings Inc., TerreStarHoldings Inc., and TerreStar New York Inc. Motient VenturesHolding Inc., a wholly owned subsidiary of MVH Holdings Inc.,directly holds approximately 89.3% and 86.5% interest in TerreStarNetworks and TerreStar Global, respectively.

TerreStar Networks Inc. and Its affiliates filed voluntarypetitions for relief under Chapter 11 of the United StatesBankruptcy Code in Manhattan (Bankr. S.D.N.Y. Lead Case No.10-15446).

TERRESTAR NETWORKS: Solus Demands Documents From Debtors--------------------------------------------------------Solus Alternative Asset Management LP and Remus Holdings LLC,each in its capacity as a holder of 6.5% senior exchangeablepayment-in-kind notes due 2014 of TerreStar Networks Inc., askJudge Sean Lane to compel the Debtors to respond to requests forproduction of documents served by the Noteholders.

Susheel Kirpalani, Esq., at Quinn Emanuel Urquhart & SullivanLLP, in New York, tells the Court that Solus and Remus are forcedto file a motion due to the Debtors' "continued gamesmanship andfailure to abide by the procedural rules governing discovery inthese cases, as modified by the Court's case management order."

Mr. Kirpalani reveals that after a conference call with the Courton November 12, 2010, the Noteholders negotiated a documentrequest in addition to certain documents the Debtors had alreadyagreed to provide.

Given the timing issues, the Noteholders asked for production ofthe documents on a rolling basis, commencing on November 12,2010, Mr. Kirpalani states. As of 11:59 p.m. EST on Sunday,November 14, 2010, the Debtors had failed to produce a singleresponsive document, he reveals.

The Noteholders do not understand the Debtors' refusal to complywith a straightforward document request, but are concerned thatthe Debtors may be preparing a massive, middle-of-the-nightelectronic data dump on the Noteholders, Mr. Kirpalani tellsJudge Lane. He explains that the result of a massive data dumpwill be uncertain whether the Noteholders will have anopportunity to review the documents prior to the deposition ofthe Debtors' witness scheduled for 2 p.m. EST on November 15,2010.

Accordingly, regardless of whether the data dump occurs or not,the Noteholders reserve all rights in connection with theDebtors' production of documents, including the right to compelproduction of documents, in the event the Noteholders are unableto locate responsive documents, if any, that are contained in amassive electronic data dump, prior to the commencement of thedeposition of the Debtors' witness, Mr. Kirpalani asserts.

By failing to produce documents prior to November 15, the Debtorshave wrongfully withheld documents that are important toassessing the Debtors' request to approve postpetition financing,Mr. Kirpalani contends. The DIP Motion should not be approveduntil the documents have been produced and the Noteholders havebeen afforded sufficient time to review them, he insists.

In opposing the DIP Financing Motion, the Noteholders asked forthe production of documents concerning the Debtors' allegedefforts to market their assets to potential acquirors, includingboth potential strategic acquirors and potential financialacquirors.

"That information," Mr. Kirpalani maintains, "is essential toassessing what progress has been made in marketing the Debtors'assets, which in turn is absolutely critical to determiningwhether the limited amount of time provided under the DIP Motionfor submission of alternative restructuring proposals would, as apractical matter, preclude the Debtors from pursuing atransaction other than the current transaction with EchoStar."

About TerreStar Networks

Reston, Va.-based TerreStar Corporation (NASDAQ: TSTR)-- http://www.terrestar.com/-- is in the mobile communications business through its ownership of TerreStar Networks, itsprincipal operating subsidiary, and TerreStar Global.

TerreStar Networks, in cooperation with its Canadian partners,TerreStar Canada and TerreStar Solutions, majority-ownedsubsidiaries of Trio 1 and 2 General Partnerships, plans to launchan innovative wireless communications system to provide mobilecoverage throughout the United States and Canada using integratedsatellite-terrestrial smartphones and other devices. This systembuild out will be based on an integrated satellite and ground-based technology intended to provide communication service in mosthard-to-reach areas and will provide a nationwide interoperable,survivable and critical communications infrastructure. TheCompany intends to provide multiple communications applications,including voice, data and video services.

As of June 30, 2010, the Company had four wholly ownedsubsidiaries, MVH Holdings Inc., Motient Holdings Inc., TerreStarHoldings Inc., and TerreStar New York Inc. Motient VenturesHolding Inc., a wholly owned subsidiary of MVH Holdings Inc.,directly holds approximately 89.3% and 86.5% interest in TerreStarNetworks and TerreStar Global, respectively.

TerreStar Networks Inc. and Its affiliates filed voluntarypetitions for relief under Chapter 11 of the United StatesBankruptcy Code in Manhattan (Bankr. S.D.N.Y. Lead Case No.10-15446).

TRIBUNE CO: Gets Nod of Avoidance Actions Tolling Pact------------------------------------------------------Prior to and after the Petition Date, Tribune Co. and its unitsmade certain transfers of cash and other assets, and carried outtransactions between each other, and also between the Debtors, onthe one hand, and the Non-Debtor Affiliates, on the other hand.The Intercompany Transfers occurred, among other things, inconnection with the cash management system maintained by most ofthe Parties.

Pursuant to the limitations periods contained in Section 546(a),549(d), and 108(a) of the Bankruptcy Code, and other applicablebankruptcy or non-bankruptcy law or "SOLs," the time within whichthe Debtors and Non-Debtor Affiliates may commence actions orproceedings under Sections 544, 545, 547, 548, 549 or 553 of theBankruptcy Code with respect to Intercompany Transfers and maycommence actions or proceedings expires on December 8, 2010.

James Conlan, Esq., at Sidley Austin LLP, in Chicago, Illinois,attorney for the Debtors, says the Debtors and Non-DebtorAffiliates wish to toll the SOLs and, thereby, preserve anyAvoidance Actions and Intercompany Actions, whether asserted byclaim, counterclaim, cross-claim, or otherwise, and whether or notthe Debtors or Non-Debtor Affiliates actually commence one or moreAvoidance Actions or Intercompany Actions on or before December 8,2010, or any other date upon which an applicable SOL would expire.

To that end, the Debtors and the Non-Debtor Affiliates desire andare willing to enter into the Agreement between and amongthemselves in order to preserve any and all Avoidance Actions andIntercompany Actions, if any, that they may have according to theterms set forth in the Agreement.

According to Mr. Conlan, settlement and resolution of intercompanyclaims, including Avoidance Actions and Intercompany Actions, is asubject of the Debtors' recently filed plan of reorganization andmay also be the subject of other reorganization plans. Pendingaddressing resolution of these claims in connection with the planof reorganization process, the Debtors wish to preserve and avoidcompromising potential Intercompany Actions and Avoidance Actionsby the running of the SOLs, he tells the Court.

The material terms of the Agreement are:

-- The time period extending from October 28, 2010 until the date the Agreement expires or is terminated in accordance with its terms will not be counted in determining the time in which the Parties, or their successors or assigns, including, without limitation, any trust established pursuant to a plan of reorganization or otherwise, will be permitted by any SOL to file an Avoidance Action or Intercompany Action.

-- The Parties waive any defense under Section 546(a) or any other SOL, including off-set arguments arising under Section 502(d), and agree not to assert time-based defenses of any kind, including but not limited to laches, waiver, or estoppels, to any Avoidance Action or Intercompany Action due to the passage of time between the date of the Agreement and the Expiration Date.

-- The Agreement will remain in force and effect until June 30, 2011, unless the Tolling Period is extended earlier.

The Debtors accordingly sought and obtained approval fo theAgreement.

The Debtors tell the Court that with the approval of theAgreement, and in view of the plan of reorganization process, theydo not anticipate presently commencing any Avoidance Actions orIntercompany Actions.

* * *

The Debtors certified to the Court that no objection was filed asto the Motion.

At the hearing on the Motion on November 10, 2010, the Courtraised issue with the language contained in the last paragraph ofthe proposed form of Agreement and Order regarding Tolling ofStatutes of Limitation and advised counsel for the Debtors thatthe Court would be willing to approve the Tolling Agreementwithout that language.

Accordingly, the Debtors delivered to the Court a Revised TollingAgreement which deleted the language questioned by the Court inthe last paragraph.

The Company and 110 of its affiliates filed for Chapter 11protection on December 8, 2008 (Bankr. D. Del. Lead Case No. 08-13141). The Debtors proposed Sidley Austin LLP as their counsel;Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel;Lazard Ltd. and Alvarez & Marsal North America LLC as financialadvisors; and Epiq Bankruptcy Solutions LLC as claims agent. Asof December 8, 2008, the Debtors have $7,604,195,000 in totalassets and $12,972,541,148 in total debts.

TWIN CITY LOFTS: Files for Chapter 11 Amid Vacancy--------------------------------------------------Brian Chappatta, writing for Crain's New York Business, reportsthat The Backer Group has filed for Chapter 11 bankruptcyprotection for one of its holdings -- Twin City Lofts.

Twin City Lofts owns a two-story, 50,000-square-foot industrialbuilding at 1050 Atlantic Ave. in Brooklyn's Prospect Heights.The Backer Group bought the building early in 2007 for $5 million,Crain's reports, citing CoStar Property data. The building hasbeen on the market for more than three years, with an asking priceof $6 million.

Crain's says Yehuda Backer, who is listed in the bankruptcy filingas "managing member" of Twin City Lofts and is also an executiveof the Backer Group, declined to comment on either the details ofthe property or the bankruptcy. He simply noted that the buildingis "empty." His attorney did not return phone calls.

Crain's reports that according to CoStar, the property has beenvacant since October 2009. The previous owner of the space wasFinetex Yarn Corp.

Twin City Lofts listed assets of $10 million and total debts of$4.72 million. The Backer Group is listed as the holder of thelargest unsecured claim, nearly $1.1 million. The New York CityDepartment of Finance holds a claim of about $127,000.

The Backer Group is a Brooklyn-based development and managementcompany. Crain's says it stirred up a firestorm of controversy inWilliamsburg for allegedly pricing a beloved local bagel shop outof its lease to make way for a Starbucks.

Credit profiles improved meaningfully in 2010, free cash flow ispositive, liquidity is adequate and for most issuers debtreduction remains a focus. Fitch is concerned about operatingearnings declines in dairy and produce but is cautiouslyoptimistic that the protein industry can manage through a morechallenging cost environment. Moderate pricing is anticipated forcommodity food companies but volume growth will vary acrosscategories.

'Credit upside exists for the industry in 2011, given that theRating Outlooks for Del Monte, Tyson and Smithfield are allPositive,' said Carla Norfleet Taylor, Director at Fitch. 'DelMonte and Tyson are investment grade candidates, and Smithfieldcould be upgraded within the 'B' category if hog production staysprofitable and deleveraging continues. The Rating Outlook forDean Foods, however, could be revised to Negative if the currenttrajectory of operating earnings declines continues.'

Fitch views supply levels as the primary factor for commodity foodpricing in 2011, due to limited brand strength for the industry,value-seeking consumers, and retailer pushback within certain foodcategories. Higher than expected corn, fuel and fluid raw milkcosts or weaker than expected pricing due to increased supply orweak global demand would be negative for the industry.

High feed costs should curb protein production while exports areexpected to grow despite reduced demand from Russia. Volatilityaround European banana supply and pricing, which historicallyoccurs around changes in tariffs, remains a risk for global freshproduce firms but 2011 should be a better year for prices.Private label penetration and negative mix shift have reducedmargins for milk processors and Fitch expects excess capacity andcompetition to limit price increases.

Modest pricing, operating efficiencies, and effective hedgingshould partially mitigate margin compression for commodity foodcompanies. However, significant reductions in operating cashflow, negative FCF, and concerns about liquidity along withviolations of financial covenants could result in Outlookrevisions and or downgrades.

The full report '2011 Outlook: Commodity Food; Credit UpsideExists but Inflationary Cost Pressures and Pricing Concerns Rise'is available on the Fitch Ratings web site 'www.fitchratings.com.'

US ANTIMONY: Earns $85,800 in September 30 Quarter--------------------------------------------------United States Antimony Corporation filed its quarterly report onForm 10-Q, reporting net income of $85,815 on $2.66 million ofrevenue for the three months ended September 30, 2010, comparedwith a net loss of $49,718 on $1.21 million of revenue for thesame period of 2009.

At September 30, 2010, the Company had negative working capital ofapproximately $58,877 and an accumulated deficit of$20.72 million.

The Company's balance sheet at September 30, 2010, showed$4.77 million in total assets, $1.14 million in total liabilities,and stockholders' equity of $3.63 million.

As reported in the Troubled Company Reporter on April 7, 2010,DeCoria, Maichel & Teague, P.S., in Spokane, Wash., expressedsubstantial doubt about the Company's ability to continue as agoing concern after auditing the Company's financial statementsfor the year ended December 31, 2009. The independent auditorsnoted of the Company's negative working capital andaccumulated deficit.

Thompson Falls, Mont.-based United States Antimony Corporationproduces and sells antimony and zeolite products.

VALLEJO, CA: City Manager Presents Five-Year Budget---------------------------------------------------Bill Rochelle, the bankruptcy columnist for Bloomberg News,reports that the city manager of Vallejo, California, gave thecity council a five-year budget to form the basis for a plan forconcluding the city's Chapter 9 municipal reorganization.

According to the report, the budget would defer principal paymentson debt until 2013, when payments would begin on a reduced level.The manager also wants city workers to increase contributions totheir health plan and reduce benefits for future workers. Thebudget is under discussion with creditors and unions. The citycouncil will consider approving the budget at a Nov. 30 meeting.

About City of Vallejo

Vallejo -- http://www.ci.vallejo.ca.us/-- is a city in Solano County, California in the United States. As of the 2000 census,the city had a total population of 116,760. It is located in theSan Francisco Bay Area on the northern shore of San Pablo Bay. Itwas named for General Mariano Guadalupe Vallejo.

Vallejo filed for protection under Chapter 9 of the U.S.Bankruptcy Code (Bankr. E.D. Calif. Case No. 08-26813) on May 23,2008, after it was unable to persuade labor unions to acceptsalary concessions as the recession began cutting into localgovernment tax collections nationwide. Marc A. Levinson, Esq.,and Norman C. Hile, Esq., at Orrick, Herrington & Sutcliffe LLP inSacramento, California, represent the City. The city estimated$500 million to $1 billion in assets and $100 million to $500million in debts in its petition. According to Vallejo'scomprehensive annual report for the year ended June 30, 2007, thecity has $983 million in assets and $358 million in debts.

Based on WMI's valuation of the WMB stock, WMI has determined thatthe stock is, in and of itself, worthless, and furthermore, thatthe potential significant tax saving that may result from aworthless stock loss deduction up on the abandonment of the WMBstock justified its abandonment prior to the effective date.

A hearing to consider the motion is scheduled for December 17,2010 and objections are due by November 29, 2010.

Based in Seattle, Washington, Washington Mutual Inc. --http://www.wamu.com/-- is a holding company for Washington Mutual Bank as well as numerous non-bank subsidiaries.

Washington Mutual Bank was taken over on Sept. 25, 2008, by U.S.government regulators. The next day, WaMu and its affiliate, WMIInvestment Corp., filed separate petitions for Chapter 11 relief(Bankr. D. Del. 08-12229 and 08-12228, respectively). WaMu owns100% of the equity in WMI Investment. When WaMu filed forprotection from its creditors, it disclosed assets of$32,896,605,516 and debts of $8,167,022,695. WMI Investmentestimated assets of $500,000,000 to $1,000,000,000 with zerodebts.

WEST VALLEY CHILD: Dist. Ct. Denies Retroactive Lease Termination-----------------------------------------------------------------The Hon. John W. Sedwick of the U.S. District Court for theDistrict of Arizona affirms the Bankruptcy Court's decisiondenying retroactive termination of the lease between West ValleyChild Crisis Center, Inc., and Westfest LLC. The lease isrejected effective May 10, 2010, the date of the BankruptcyCourt's order rejecting the lease. West Valley sought aretroactive lease rejection date of March 29, 2010, the date theparties' standstill agreement had expired.

The District Court's Order and Opinion, dated November 12, 2010,is available at http://is.gd/hhqKLfrom Leagle.com.

Based in Peoria, Arizona, West Valley Child Crisis Center, Inc.,filed for Chapter 11 bankruptcy petition (Bankr. D. Ariz. Case No.10-09210) on March 31, 2010. Judge George B. Nielsen Jr. presidesover the case. Thomas E. Littler, Esq., at Gordon Silver, inPhoenix, serves as the Debtor's bankruptcy counsel. The Debtorestimate $500,001 to $1 million in assets and $1 million to$10 million in debts in its petition.

The Debtor did not file its list of largest unsecured creditorswhen it filed its petition.

ZANETT INC: Remains in Talks to Replace BofA Facility-----------------------------------------------------Zanett Inc. said in a regulatory filing it remains in discussionto replace its revolving credit facility with Bank of America.

Zanett was not in compliance with certain loan covenants as ofSeptember 30, 2010. The credit facility matured on June 21, 2010.

The Company's line of credit is subject to a forbearance agreementwith BofA. The forbearance period has been extended a handful oftimes, most recently October 31, 2010. Under the forbearanceagreement, as amended, the advance rate was reduced from 80% ofthe face amount of eligible accounts receivable to 62.5% of theface amount of eligible accounts receivable, and the maximumrevolving loan limit was reduced to $5,000,000. Under theforbearance agreement, as amended, interest on loans under theline of credit was increased by 2.0% to 5.0% per annum over thebase rate of the revolving credit facility. To date, therespective obligations of Bank of America and the Company remainin forbearance pursuant to the forbearance agreement, as amended.

On December 31, 2006 the Company entered into a revolving creditfacility with LaSalle, which later merged with BofA. As amended,the available line of credit was based on 80% of eligible accountsreceivable up to a maximum of $6,000,000, which has since beendecreased as described below. Loans under the revolving creditfacility bear interest at a rate per annum equal to the greatestof (a) the prime rate, (b) the federal funds rate plus 0.5% or (c)the 30-day LIBOR rate plus 1.0%, in each case plus 3.0% per annum,which has since been increased. In addition to the creditfacility, BofA provides the Company with treasury and cashmanagement services. The facility is secured by a first prioritylien on all of the Company's assets. In addition to the interestcharges there is an unused line fee of 1/2% per annum, payablemonthly. At September 30, 2010, fees paid to the bank andattorneys were $178,825.

The credit facility terms require the Company to meet certainfinancial covenants, including a fixed charge coverage ratio of1.25 to 1.0, a maximum senior debt ratio of 2.5 to 1.0,maintenance of minimum net availability of $500,000 at all times,and excess cash flow of not less than $0 at all times, testedquarterly.

The Company had borrowings under its revolving line of credit withBank of America of $4,617,484 as of September 30, 2010, which isreflected as a current liability on the balance sheet. Availableborrowings under the revolving line of credit were $324,295 as ofSeptember 30, 2010.

On Monday, Zanett reported net income of $94,660 for the threemonths ended September 30, 2010, from a net loss of $818,072 forthe same period a year ago. Zanett posted a net loss of $693,244for the nine months ended September 30, 2010, from a net loss of$734,945 for the same period a year ago.

At September 30, 2010, the Company had total assets of$29,103,622, total liabilities of $21,165,812, and stockholders'equity of $7,937,810.

Based in New York, Zanett Inc. is an information technologycompany that provides customized IT solutions to Fortune 500corporations and mid-market companies. Until the disposition ofParagon Dynamics, Inc., the Company also provided those solutionsto classified government agencies.

ZOOM TELEPHONICS: Earns $279,200 in September 30 Quarter--------------------------------------------------------Zoom Telephonics, Inc., filed its quarterly report on Form10-Q, reporting net income of $279,150 on $4.2 million of revenuefor the three months ended September 30, 2010, compared with a netloss of $871,851 on $2.5 million of revenue for the same periodlast year. This was the first net profit since the fourth quarterof 2006.

The Company's balance sheet at September 30, 2010, showed$4.9 million in total assets, $1.9 million in total liabilities,and stockholders' equity of $3.0 million.

"The recent history of losses and other conditions raisesubstantial doubt about the Company's ability to continue as agoing concern, the Company said in the filing."

According to the report, now law firms are trying to win newcustomers by offering deep discounts for start-ups. The reportrelates that some firms are offering small businesses a flat-monthly fee rather than charging them by the hour. Others offerflat rates for certain services, such as handling the paperworkfor starting a company, the report says.

The report notes that many small companies say the discounts are abig help at a time when budgets are tighter than ever. Ray Case,a plumbing contractor in Ann Arbor, Mich., says flat fees fromattorney Ken Gross proved precious as he journeyed throughbankruptcy court, folding one company and forming another, thereport posts.

He paid $10,000 total for at least 100 hours of work, andestimates he saved at least $15,000 over typical hourly rates, thereport adds.

Monday's edition of the TCR delivers a list of indicative pricesfor bond issues that reportedly trade well below par. Prices areobtained by TCR editors from a variety of outside sources duringthe prior week we think are reliable. Those sources may not,however, be complete or accurate. The Monday Bond Pricing tableis compiled on the Friday prior to publication. Prices reportedare not intended to reflect actual trades. Prices for actualtrades are probably different. Our objective is to shareinformation, not make markets in publicly traded securities.Nothing in the TCR constitutes an offer or solicitation to buy orsell any security of any kind. It is likely that some entityaffiliated with a TCR editor holds some position in the issuers"public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies withinsolvent balance sheets whose shares trade higher than $3 pershare in public markets. At first glance, this list may look likethe definitive compilation of stocks that are ideal to sell short.Don't be fooled. Assets, for example, reported at historical costnet of depreciation may understate the true value of a firm'sassets. A company may establish reserves on its balance sheet forliabilities that may never materialize. The prices at whichequity securities trade in public market are determined by morethan a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in eachWednesday's edition of the TCR. Submissions about insolvency-related conferences are encouraged. Send announcements toconferences@bankrupt.com/

On Thursdays, the TCR delivers a list of recently filedChapter 11 cases involving less than $1,000,000 in assets andliabilities delivered to nation's bankruptcy courts. The listincludes links to freely downloadable images of these small-dollarpetitions in Acrobat PDF format.

Each Friday's edition of the TCR includes a review about a book ofinterest to troubled company professionals. All titles areavailable at your local bookstore or through Amazon.com. Go tohttp://www.bankrupt.com/books/to order any title today.

Monthly Operating Reports are summarized in every Saturday editionof the TCR.

The Sunday TCR delivers securitization rating news from the weekthen-ending.

For copies of court documents filed in the District of Delaware,please contact Vito at Parcels, Inc., at 302-658-9911. Forbankruptcy documents filed in cases pending outside the Districtof Delaware, contact Ken Troubh at Nationwide Research &Consulting at 207/791-2852.

This material is copyrighted and any commercial use, resale orpublication in any form (including e-mail forwarding, electronicre-mailing and photocopying) is strictly prohibited without priorwritten permission of the publishers. Information containedherein is obtained from sources believed to be reliable, but isnot guaranteed.

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